by disturbances, during which Government troops crossed into Nicaragua, but nothing beyond a protest from the United States appears to have resulted. In Costa Rica three candidates presented themselves for the Presidency at the election in December, but as none received a majority of votes the election was postponed until May next when one of the candidates is expected to retire. Salvador has reached a settlement of its debt default under conditions which assure a good deal of money being used for the development of that Republic; Honduras is again negotiating a settlement of its debt and a scheme is to be put before Congress shortly; and Costa Rica, Nicaragua, and Guatemala have continued faithfully to provide for the service of their external loans. The Conference of Central American Republics (Guatemala, Salvador, Honduras, Nicaragua and Costa Rica), which had been opened on December 4, 1922, held its final session on February 7. Its chief achievement was to frame a General Treaty of Peace and Friendship (see Public Documents in this volume) which contained those parts of the Treaty of 1907 that had been found to be of value in maintaining friendly relations between the various Central American States. Conventions were also passed limiting armaments, establishing mutual free trade, and setting up international commissions of inquiry with the United States. CHILE. On March 25 representatives of all the American Republics except Mexico, Peru, and Bolivia met at Santiago, the capital of Chile, to attend the Pan-American Conference. The Chilean Minister in London, Sir Augustin Edwards, was elected President. The chief object of the Conference was to promote closer association between the States of the American continent, but its ultimate effect was to foster discord rather than harmony. The reason was that Chile insisted on bringing up the question of naval armaments, discussion of which brought into prominence the old-standing rivalry between herself, Brazil, and Argentina (v. Brazil). The only positive achievement of the Conference was to formulate some proposals for a close cooperation in stamping out disease. The question of Arica and Tacna which has been in dispute between Chile and Peru for so many years has advanced, it is. to be hoped, a step nearer a solution, both sides having agreed to submit to the arbitration of the President of the United States. The increase in the demand for nitrate of soda which set in at the beginning of the year continued throughout 1923, and towards the close had reached considerable proportions. The Budget figures were therefore revised, and the British-owned railway companies which derived much of their revenue from the transport of nitrate reported a substantial increase in gross earnings in 1923 over the previous year. The year terminated with a Presidential crisis such as Chile has been accustomed to for many years. On this occasion its immediate cause was the President's insistence on the passing of new measures for increasing taxation with a view to enlarging the country's revenue sufficiently to cover expenditure. COLOMBIA. Towards the close of 1922 a settlement was arrived at between the Republic of Colombia and the United States by which the latter agreed to pay 25,000,000 dollars as compensation to Colombia for the loss of the State of Panama, and during 1923 the first instalment of 5,000,000 dollars was actually paid. The receipt of this sum of money raised high hopes for the prosperity of the Republic; in particular it was believed that United States financial interests would be disposed to assist in the development of the country. These hopes proved groundless; and the unsatisfactory coffee crop only added to the difficulties of the situation. An important native bank closed its doors in July, but as the Colombian Government had for some time had under consideration a scheme for the organisation of a National Bank, the buildings and the business of the defaulting bank were taken over, and the Government-owned 'Banco de la Republica" formed. Part of the 5,000,000 dollars received from the United States was used for this purpose. During the year an important financial mission from the United States visited Colombia to study its economic position, and has given advice to President Ospina which is likely to be followed. The internal debt has been reduced by the operation of the sinking fund which provides for half-yearly redemption. CUBA. The year 1923 saw the continuance of prosperity in Cuba. By July the whole of the sugar stocks from the previous crops as well as the bulk of the 1922-23 crop were sold, so that at the close of 1923 sugar stocks in Cuba were at a low level. During the year the Republic had to cope with some industrial and political trouble. But the storms were successfully weathered. The financial assistance rendered by the United States at the beginning of 1923 has helped to create confidence, improve trade, and increase the Island's prosperity. MEXICO. During the first eleven months of 1923 the Republic of Mexico continued to make slow but steady progress under the rule of President Obregon. But in the early days of December another revolutionary disturbance broke out which appears to be serious. The Presidential election is due to take place about the middle of 1924, but a year ago candidates began to appear, and by the autumn of 1923 twenty-two were in the field, of whom General Plutarco Elias Calles, at one time Secretary of State, and Don Adolfo de la Huerta, Finance Minister, were the favourites. Apparently General Obregon supported the candidature of General Calles, with the result that General Huerta and his friends took the field, captured the important port of Vera Cruz, and about three-quarters of the line of the Mexican Railway which connects Vera Cruz with Mexico City. Other districts are also in the hands of the rebels. The civil war was still raging when the year closed. The agreement in connexion with the debt was reached in June, 1922, and approved by the Mexican Senate in September of that year, when it was ratified by the President. În May, 1923, the International Bankers' Committee issued the full terms of the proposed settlement, and later announced that it had received sufficient support from bondholders to warrant the Committee declaring the scheme operative. Cash to the extent of 15,000,000 U.S.A. dollars had been deposited in New York, and this would be sufficient for one year's interest. During 1923 commercial progress was interrupted by strikes at Vera Cruz, and towards the autumn trade depression was affecting the country. Oil production declined during the year. The total trade of Mexico during the first half of 1923 was nearly 52,000,000l. and gave an export balance over imports of nearly 22,000,0001. As a result of Conferences between Commissioners of Mexico and the United States held at Mexico City between May 14 and August 15, diplomatic relations between the two countries were renewed early in September. PERU. President Leguia, who has done much to develop his country since he came to power a few years ago, in the early days of 1923 inaugurated a remodelled constitution which permitted his re-election to the Presidency for a second term of office. This, while meeting with the approval of the majority of citizens, gave offence to his political opponents, and in November a former Prime Minister attempted a coup d'état. The plot failed, for the authorities, warned of what was contemplated, arrested and deported a number of the conspirators, and seized a quantity of bombs and ammunition. Apart from this, political affairs in Peru were normal throughout the year. In November briefs were filed at Washington in connexion with the arbitration on the Arica and Tacna question with Chile, and there is hope that this bone of contention between the two States will eventually be settled. In the meantime Peru's relations with her neighbours have been satisfactory. Considerable progress has been made in the work of demarcating the frontiers between Peru and Brazil; the boundary dispute with Colombia has been practically settled; similar questions with Ecuador have been submitted to the arbitration of Washington; and a Treaty of obligatory arbitration concluded with Venezuela. The diplomatic and consular service of Peru has been reformed, and the State Bank which was started in April, 1922, has met with considerable success, especially in the important duty of regulating the circulating medium of the Republic. Trade, which declined in 1921 from the high level of 1920, and was further reduced in 1922, showed a substantial improvement during the first nine months of 1923. URUGUAY. Politically there was nothing of importance in the Republic of Uruguay during 1923. Strikes were almost entirely avoided, and while several of the British companies which have had matters in dispute with the Municipality of Montevideo have not yet been able to arrive at a settlement, no further difficulties in this respect have arisen. Towards the close of 1923 it became obvious that bigger crops of wheat, linseed, and oats would be obtained during the season which commences in December, while the wool clip was expected to yield 8,000,000l. This led to a rapid improvement in the exchanges which had been seriously depressed throughout the year. The Finance Minister had shown a budgetary deficit of over 7,000,000l. during each of the two years to the end of June, 1923, and anticipated a similar deficit for the year to the end of June, 1924. To meet these deficits a foreign loan was proposed, but negotiations with a leading American bank came to nothing, since the terms offered were unacceptable to the Government. The latest proposals were to raise the money internally, and in order to do this increased taxation was contemplated. The trade of Uruguay, which had rapidly declined during 1921 and 1922 from the high figures of 1919, began to improve during 1923; exports and imports for the first six months were largely in excess of the figures of the corresponding period. OTHER REPUBLICS. The civil war in Paraguay which seemed to have come to an end at the beginning of the year broke out again in the early months of 1923 and continued until July. The rebels attacked the capital but were easily put to flight, and the ringleaders were captured. The second half of the year brought promise of prosperity which will last if only the Government is able to maintain itself. The adverse exchanges were the predominant problem in Ecuador; while in Bolivia little occurred apart from strikes. In Venezuela the Vice-President of the Republic was assassinated, but this political crime had no untoward consequences for the country. CHAPTER XI. AUSTRALASIA: THE COMMONWEALTH OF AUSTRALIA-NEW THE COMMONWEALTH OF AUSTRALIA. DURING the greater part of 1923 Australia's internal politics were dominated by happenings outside Australia, in particular by the debates upon Imperial relations at the London conferences during October and November. The absence of the Australian Prime Minister in London necessitated a short session of the Commonwealth Parliament. In addition, four State Premiers visited Britain during 1922-23 and so tended to keep the attention of Australians upon the broader aspects of Imperial politics and economics rather than upon local issues. Earlier, however, Commonwealth politicians were required to meet the situation resulting from the defeat of Mr. W. M. Hughes at the General Election in December, 1922. Mr. Hughes became Prime Minister in October, 1915, and had held ministerial office for twelve years. The Election reduced the Nationalist members in the House of Representatives from thirty-eight to twenty-nine, the party losing seven seats, in addition to which Mr. Watt definitely left the party, prior to his acceptance of the Speakership, and Mr. L. Atkinson joined the Country Party. Mr. Hughes's position was so weakened that, at a Nationalist caucus on January 16, he consented to open negotiations with the Country Party with a view to an alliance which would ensure a stable Government. In the alternative, Lord Forster, the Governor-General, would have sent for Mr. Charlton, leader of the Labour Opposition, who could have formed an administration and immediately prorogued Parliament until July, the necessary supply being available until the end of the financial year. Directly negotiations with the Country Party were opened, it became plain that the retirement of Mr. Hughes from the Premiership was an essential preliminary to a coalition. Mr. Hughes accordingly retired on the understanding that Mr. Stanley Bruce, the Commonwealth Treasurer, should be accepted by the Country Party as the new Prime Minister. The following Ministry was formed: : Mr. Stanley Melbourne Bruce, M.C. (V.), Prime Minister and Minister for External Affairs. Dr. Earle Christmas Grafton Page (N.S. W.), Treasurer. Senator George Foster Pearce (W.A.), Minister for Home and Territories. Mr. William Gerrard Gibson (V.), Postmaster-General. Mr. Austin Chapman (N.S.W.), Minister for Trade and Customs and Mr. Percy Gerald Stewart (V.), Minister for Works and Railways. Mr. Eric Kendall Bowden (N.S.W.), Minister for Defence. Mr. Llewelyn Atkinson (T.), Vice-President of the Executive Council. Senator T. W. Crawford (Q.), Honorary Minister. |