Correspondence
THE LEAGUE AND EUROPE.
[To the Editor of the SPECTATOR.] SIR,—As I write the League of Nations is applying itself to the twofold task of damping down the agitation the Austro-German Customs Union project has stirred up, and of devising remedies for the economic ills of Europe. For a final judgment on its efforts it will be necessary to wait another week, but the earlier omens are encouraging. That is just as well, for this is the first time the League has had to deal with a front-rank issue fundamentally dividing the Great Powers of Europe.
Two instruments are handling different aspects of the problemproblem, not problems, for the Austro-German affair and the state of Europe are in the main being treated as different manifestations of the same economic malaise— the League Council, before which the British Foreign Secretary has raised the legality of the proposed Customs Union, and the European Committee of the League (the outcome of M. Briand's so-called United States of Europe proposals) which is dealing with any device, from customs unions to wheat preferences, that might alleviate the economic afflictions of the continent.
This division of labour is working well. The attitude of the Germans is clear. They are satisfied that the plan they have elaborated violates no treaty by which Austria is bound, and that being so, they have no objection to submitting the Customs Union scheme to the Permanent Court at The Hague. The Austrians, who are more deeply involved, because it is they, not the Germans, who are bound by the treaties which it is alleged are being transgressed, are even less reluctant to bow to the general will and send the issue to The Hague. So to The Hague it goes. The Court is to be asked whether the Customs Union proposals as set out in the document which the two Governments published in March are or are not compatible with the pledge Austria gave in 1922, at the time when the League arranged a loan for her, to keep her economic as well as her political independence absolutely inviolate. There is little point in splitting legal hairs about that here. The French are convinced that the new agree- ment would violate the 1922 Protocol. So is Dr. Benes of Czechoslovakia. On the other hand, there is no better international lawyer in Europe than Dr. Gans of the German Foreign Office, and if he declares the customs agreement to be all right, most prudent people will hesitate to pronounce it all wrong. In any case, the Court will have settled the matter one way or the other by August, and we can be well content to leave the issue in their hands till then.
But meanwhile—meanwhile the whole project will stand arrested. That was assured by Mr. Henderson, who opened the discussion in the League Council. His proposal to send the question to the Court was accepted unreservedly by Dr. Schober, the Austrian Foreign Minister, who undertook further that nothing should be done in the interval that would mean 'presenting the Council with a fait accompli. That 'was not quite enough for Mr. Henderson. Did Dr. Schober .mean, he asked, selecting his words with pointed
significance, that no further progress would be made towards the establishment of the proposed customs regime till the League Council had had the opportunity of considering whatever verdict the Court might give ? Yes, replied the Austrian delegate, he would give that pledge without hesita- tion. Whether Dr. Curtius would or could have given the same answer if the question had been put to him is a little doubtful. But if Austria promises to suspend the negotiations, Germany clearly cannot continue them.
There is a strong temptation at this stage to digress a little and enlarge on the virtues of refrigeration. There is nothing spectacular about the process of putting an issue into cold storage for a few months by the simple process of referring it to the Permanent Court, but it has a wonderfully emollient effect on ruffled tempers. Even if it had not been essential in this case to secure a legal ruling, it would have been worth while to pretend it was. Anyhow, to the Court the legal aspect of the question has gone, and between now and September, when the League Council next meets, there remains a little more than three months in which to deal with the practical aspect. What is that practical aspect ?
It consists in the special reactions produced in Germany and Austria by the depression common to the whole of Europe, and other continents besides. Both Dr. Curtius and Dr. Schober have insisted that nothing but economic considera- tions influenced them, and that they turned to the Customs Union as the most hopeful way out of their distresses. It is for the European Committee to see whether in the next three months it can find a way more hopeful still.
The search for that way has begun already. a variety of schemes having been cast on the committee's table in the first two days. It is a notable body, by the way, this emana- tion of M. Briand's aspiring brain. Something over twenty Foreign Ministers (these eminent persons seem always difficult, for some reason, to count with precision) are taking part in its deliberations and most of them have their practical contributions to make. Mr. Henderson has so far contributed only his personality, but that is a greater asset than people who have not been to Geneva might realize.
M. Litvinoff, remarking sardonically that the geographers will be glad to know that Russia is in Europe, where they thought it was, after all, proposes a convention prohibiting —as an anti-dumping measure—the sale of goods abroad at a lower price than they fetch at home. Signor Grandi, of Italy, urges, amid general approval, the resuscitation of the tariff truce agreement which never came into force because not enough States adhered to it. M. Briand, for France, produces a full-blown reconstruction plan, and Dr. Benes of Czechoslovakia. whose mind runs along the same lines, is likely to add a little to it. Dr. Curtius, of Germany, thinks the main cause of the trouble is the chopping up of Europe into little parcels, but with his customs union to keep him from falling into lethargy he refrains from any other definite proposal.
Now this might easily become a welter of diverse and incompatible suggestions. At this stage it matters little if it is, for a special committee, or committees, will clearly have to take the whole pile and evolve from the plans that constitute it something that will really be of some benefit to Europe and appeal sufficiently to Germany and Austria to reconcile them to merging their own proposal with the rest. That will mean a happy issue out of present disagree- ments, even if the Permanent Court does, contrary to general expectation, pronounce the customs union to be compatible with Austria's obligations.
But that, of course, postulates success in the evolution of a plan that shall up to a reasonable limit meet the present need. No one is looking for lightning cures. The most to hope for is some sensible alleviation. The French plan provides a good enough basis to work on, envisaging as it does agricultural credits for the cereal-growing countries of Eastern Europe (the League has already worked this scheme out) the promotion of industrial cartels, the flotation through the League of international loans for the benefit of countries suffering from lack of capital, and finally a special temporary system of preferences for Austria. It will be time enough to discuss these and further suggestions emanating from other quarters next week when they have been more fully digested by the European Committee.
Meanwhile a word on the agricultural scheme is apposite. It is meant to benefit countries like Hungary and Rumania and Jugoslavia which the wheat-glut has hit with special force, and it is designed to enable farmers in those countries to raise loans at a reasonable rate and thus be in a position to change over from wheat to tobacco or maize or stock- raising. In so far as they do that and prosper they acquire purchasing power that will make them a profitable market for Great Britain and other industrial countries. Thus benefits are gradually disseminated.
All this is still in the air. But a good beginning has been made. The sting is dropping out of the Austro-German controversy, and that was the first essential of all. And the work continues.—I am, Sir, &c.,
YOUR GENEVA CORRESPONDENT.
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