4 APRIL 1931, Page 1

Mr. Henderson then explained that having in mind the vital

importance of calm preparations for the Disarma- ment Conference, he had joined with M. Briand in begging Germany and Austria not to go further until the Council of the League had considered whether their Customs scheme did, or did not, violate the Protocol of 1922. Austria had replied that the signatories of the Protocol were free to bring the question of legality before the Council of the League, but that she could not consent to what she called a purely economic agreement being treated as a political matter. Germany, in her reply, had insisted on the same distinction between economics and politics, and had added that she saw no reason at all why the League should be consulted. When Mr. Henderson pursued the conversation by telephone Germany said that she would reserve complete liberty of action in regard to any procedure suggested by the League.