News of the Week
THE Lausanne Conference will open on Thursday
with the omens more favourable than at one time seemed likely. There is quite rightly no serious talk of postponing it on account of the German crisis. The change from Dr. Bruning to Herr von Papen may have many effects, but so far as Lausanne is concerned the only difference is likely to be one of inflection and emphasis. Dr. Bruning might have refrained from saying Germany would never pay, and his successor may not, but if the Conference is wisely handled the occasion for such a declaration will be avoided. Though at some future time Germany may be in a position to pay something, and though in theory it is just that she should, the world can no longer afford the conse- quences of a prolongation of the reparation controversy. Both this country and France will gain far more by a complete cancellation of reparations now than by any deferred payment that might be harvested after a further prolonged moratorium. If Mr. MacDonald goes to Lausanne to announce that while Germany's juridical obligation to pay stands unimpaired Germany's inability to pay is-recognized, and that Great Britain at any rate 'intends to accept no further reparation payments, he will have taken the first step towards the restoration
of confidence and normality in international relations. That is the lead the world requires. There should follow that announcement an offer to remit the War debt of any country that similarly relinquishes repara- tions from Germany. There could be no better prepara- tion than that for negotiations with the United States regarding debts, based, of course, on full acknowledge- ment of the debtor's juridical obligation to pay.
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