Monday, Jul. 04, 1932

Chancellor Proposes

Work done last week at the Lausanne Conference on Reparations &; War Debts:

P:Spurred by a telegram from King Albert, Premier Renkin of Belgium secured the initialing of a Customs Union Pact by the Netherlands, Belgium and the Grand Duchy of Luxembourg, subject to ratification by their parliaments.

The "Little Three" pledged themselves to "progressive mutual tariff reduction," invited all other countries to adhere to their Pact.

P:Elaborately friendly, Premier Edouard Herriot of France (who speaks German) and Chancellor Franz von Papen of Germany (who speaks French--see p. 16) strolled about arm in arm, taking each other's measure.

Though the German said of the Young Plan that all its promises have failed to come true, adding that Germany can pay no more Reparations, there was no quarrel. The Frenchman's equally blunt retort that Germany can and must pay something, was taken in good part by Lieut.-Colonel Franz von Papen. Suddenly this onetime officer in the Kaiser's Army electrified Lausanne by proposing casually and unofficially "in American"* a military alliance between Germany and France!

"I do not understand the anxiety of France about her security," said the German Chancellor, "but surely this could be dispelled by a military alliance between the French and ourselves."

Whether to laugh at this proposal or take it seriously was a problem the Conference simply did not face last week. A train carried Chancellor von Papen to Berlin, another sped Premier Herriot to Paris. Sir John Simon had already left for London--all three to consult their Governments. In Lausanne, where the Reparations Conference was not supposed to discuss military matters anyway, it adjourned pro tempore.

Miss Ishbel MacDonald took her father for long, slow motor drives through the beauteous Swiss countryside. In London it was a matter of common remark that President Hoover had stolen the Prime Minister's thunder (see col. 3). It was even said that unless Scot MacDonald achieves a spectacular success of some sort in Switzerland his loss of prestige will make it impossible for him to continue as the head of Great Britain's National Government.

*English correspondents made the point that the German Chancellor speaks "American" not English.

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