Monday, Jan. 18, 1932

May Anticipated

To thoughtless Germans, May is still a long way off. But never for one instant has pale Chancellor Heinrich Bruning forgotten that according to Germany's Constitution Old Paul von Hindenburg's term of office is up in May. With another Reparations conference hanging over his head, he stood face to face with the prospect of a new Presidential election and general elections to the Prussian Diet, elections in which his opponents the Hitlerites were almost sure to make enormous gains.

Heinrich Bruning did not wait for May. Last week he summoned Fascist Hitler to Berlin and made him a proposition: so that the Fatherland could present a united front to the world in this winter of her greatest trial, would Hitler agree to an extension of President von Hindenburg's term?

Fascist Hitler left in a huff. Canny Bruening had put him in a tight position. Old Paul is Germany's idol. Should he refuse the Bruning request, Fascist Hitler would be accused of repudiating the idol. If he agreed, he would see himself diddled out of his great chance to seize the government legally. Stormed Hitler lieutenants:

"We are asked to agree to the disappearance of this election from the calendar with the result that our opposition will be saved from almost certain defeat. We must be given some other opportunity."

Brown Shirts went into a huddle and considered a counterproposal: they would agree provided they were given two posts in the Bruning Cabinet.

Correspondents thought it likely that canny Chancellor Bruning would accede. Hitlerites in his Cabinet could not well work for his overthrow. Meanwhile Hitler tacticians, realizing that they had lost once again, prepared to make the best of things by entering the Prussian State elections, still due in May, as champions of a party which gave up an easy victory for the good of the State.

No sooner was Chancellor Bruning assured of even luke warm Hitlerite support than he made a quiet announcement that became the week's big news. Germany's Ambassadors to Britain, France and Italy were hastily summoned to Berlin to confer with the Chancellor. Heinrich Bruning called in the British Ambassador, suave Sir Horace Rumbold who returned to his Embassy in a great flurry and called up the British Foreign Office. Somebody tapped the telephone wire. Within two hours Berlin newspapers were on the streets with the news that Germany had served notice that at the next Reparations conference, scheduled for Jan. 25 at Lausanne, Germany would announce that she could pay no more Reparations. Who was responsible for the leak no one knew. No sooner was it published than the rumor was authenticated, first by Chancellor Bruning, then by the British Foreign Office.

Year ago the announcement would have caused more of a stir, but since the Hoover Moratorium it has become increasingly evident that it will be a Herculean task to force resumption of Reparations when the year of grace is ended. London and New York took the news calmly; only the French Press screamed in anguish.

Blustered Le Temps:

"Suppression of Reparations would be equivalent to brutal repudiation of the Young Plan. . . . Repudiation of Lausanne will destroy all confidence in the possibility of recovery of the country to which treaties and agreements are scraps of paper."

French statesmen talked wildly of reprisais. Premier Laval wanted to "fight it out at Lausanne," Finance Minister Pierre Etienne Flandin threatened a 15% duty on all German products, an immediate recall of the Bank of France's quarter share in the $100,000,000 emergency credit granted to Germany in June.

Foreign observers were surprised that French comment was as moderate as it was. No one suggested re-entering the Ruhr. Newspapers argued not for the money but for the principle of the thing. A reason for this: The average Frenchman is far more interested in the world Depres sion, which affects him actually, than in Reparations which he only reads about. French unemployment increased by 16,000 in the past week alone. Luxury trades are prostrate; the mining industry is on part time. L'Oetivre (Radical Paris daily) put the matter bluntly with its headline: NOT ONE PFENNIG? NOT ONE CENT!! If this was to be the end of Reparations, let it be the end of debt payments also. London too was anxious to switch the entire burden to U. S. shoulders. Commented the Sunday Times:

"The whole mass of interlaced Repara tions and War debts is the most formidable hindrance to recovery from the eco nomic evils which now afflict the world. If the sponge is to be used at all it must wipe all away. There must be no one-sided repudiation."

Figures: The U. S. hopes to collect $21,764.000,000 from European debtors. She has received $1,650,000,000. France hopes to receive from Germany $14,176,000,000 in Reparations. She has received under the Young Plan $284,068,000. She has paid against her debt to the U. S. $200,000,000.

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