Evening star. [volume] (Washington, D.C.) 1854-1972, 1925-05-18
PR0DD|NC CREDITOR
IS NOT i. S. ROLE
Present Policy With French
May Accomplish More,
Lawrence Says.
BY DAVID LAWRENCE.

The United States Government has
not assumed the role of prodding cred.
itor. No formal note has been sent
either as a circular to the powers or as
q written demand to individual gov
ernments which owe America money.
The Department of State. simply act
ing in pursuance Of authority granted
at the last meeting OF the World War
Debt Funding Commission before Con
greSs adjourned, has from time to time
indicated to the various governments
a desire to have parleys consummated
or negotiations begun. In a nutshell,
Secretary Kellogg merely has kept the
subject before the various foreign Of
fees.
The only thing really new is the
summary given to the press of the
efforts made to secure funding ar
rangements on war debts and also an
official confirmation of the converse
lions between Ambassador Herrick
and Minister CaillauX, begun a week
ago and fully reported in Paris and
Washington dispatches at the time.
Handled Informally.
The semi-offlcial statements issued
at Paris in the last "a hours that no
note had been received there are cor
rect. The truth is the American Gov
ernment is not using the same means
of communication in every case. At
Paris the whole matter has been han
died informally in the talks which
Ambassador Herrick has had by in
struction of the American Government
and there is reason to believe the
French minister of finance asked Mr.
Herrick to get detailed instructions
for general discussion of the debt
situation.
There has been no meeting of the
World War Debt Funding Commits
sion since Congress adjourned. The
Secretary of State has had for some
time general powers of negotiation
and 1t has been left to his discretion
to determine the opportune moment
for reyivlng the subject with each
country owing money to America.
In the case of France, the United
States held off for e long time be-
cause of the cabinet crisis and even
now has made no demand. but has
simply indicated a desire TO see some
thing done.
France Not Alone.
The significant thing is that the
administration here has let 1t be
known that all countries which are
indebted to America are being asked
to keep the subject under constant
consideration until way is found to
settle. In other words, France is not
alone. The American Government,
moreover. in pursuing the subject
with Italy, Belgium. JugoslavIa,
Czechoslovakia and Rumania is help
ing along the general cause of
European credit because some of
these same countries owe France
large sums. If the United States can
bring about a general payment all
around then all countries will be in
a better position to pay something on
their war debts than would be the
case If delay and default were per
mitted
The American policy works in with
the British idea, which is to persuade
European debtors to make a start at
least on a funding arrangement. 1t
doesn't take much more than a hint
to the press to start a general discus
sion of war debts, and the American
Government is hopeful that Europe
will begin seriously to tackle the whole
interallied debt problem. For while
the Washington Government has never
conceded that German reparationS had
anything to do with the payment Of
debts owed to America by the allies.
and that the debts owed by the allies
to each other We're not a part of the
same transaction as between any of
the allies and the United States, never
theless there is growing a recognition
here that the problem has some under
lying fundamentals which are common
to every case, namely that payment
and recognition of obligation are
more vital to the future stability of
the world than a drastic reduction or a
cancellation of war debts on all sides
as has so often been argued.
May Accomplish More.
II America can turn the psychology
of Europe from default and cancella.
ton to payment in accordance with
capacity the latest bit of strategic
publicity carried on by the Wash
ington Government will have accom-.
plished more than a circular note or
formal demand for payment.
The hope now is that the smaller
countries will begin to think of pay.
ing France and that France even in
advance Of such a step will send a
commission here to discuss a suita Bile
basis for the payment of the three
and half billions she owes the United
States.
Copyright. 1025.l'