Evening star., 1925-05-19
BELGIUM TACKLES
DEBT SETTLEMENT
RAISING U. S. HOPE
Treasury Cheered by Inde-
pendent Action of Brussels
on Payment.
ENVOY WILL GO HOME
FOR NEW INSTRUCTIONS
Paris Press Sees British Hand Be-
hind Request of America for
Payment.
BY the Associated Press.

BY the Associated Press
The first break in the tangle of in
terallied debts was seen by high Gov
ernment officials here today in the de-
termination of Belgium to take inde.
pendent steps in negotiating a refund
ing settlement with the United States.
In official quarters the information
conveyed from the Belgian foreign Of
nee in last nights dispatches was ac-
cepted as being highly significant,
since Belgium must be classed as one
OF the major debtors to whom the
United States extended financial aid.
The Belgian statement to the Asso-
ciated Press created a feeling of op-
timism at the Treasury
Envoy to Sail June 9.
At the Belgian embassy it was said
today Ambassador de Marchienne
would sail for home June 9. The
whole Belgian debt situation is expect
ed to be taken up by him with his
government at that time.
1t was believed here that Belgium's
plans had been held back somewhat
by the recent ministerial crisis, but
Undersecretary Winston of the Treas
ury observed on his recent visit to
Brussels that the feeling was evident
among the government leaders that
definite moves toward laying out a
debt-paying program should be made.
The undersecretary believes that
with a balance budget such as has
been accomplished, Belgium will take
rapid strides toward a sound economic
basis. The statement that Ambassador
Cartier de Marchienne was sailing for
Brussels is believed to indicate that
the officials in Belgium now see a
more or less clear economic sky and
are ready to tie up their government
TO definite commitments.
Belgian Action Explained
There is no doubt in the minds of
officials here that the present Belgian
ministry recognizes benefits derived by
those powers which have funded their
obligations to America and are de-
sirous therefore of accomplishing the
same arrangement for their own ma
ton.
Announcement of Belgium's inten-
tons has come in the midst of con-
versations between Minister Pip of
Esthonia and Secretary Mellon on
means of arranging a funding settle
ment for Esthonia's debt of approx
mately $4,000 900.
The determination of Belgium is in
iected, likewise, while discussion is
going on in Paris on the French debt.
This situation must be accepted, it
was said, as highly significant, since,
should any one of the three mature
their plans, the way would be quickly
opened for frank talks on terms with
all other debtors.
Officials reiterated that the conver-
sations between Ambassador Phillips
and the Belgian foreign Office were a
art ,f he ,,f -,
ment to hasten action on the part of
its European debtors. 1t was declared
that Mr.. Phillips talked with the Bel
gian officials regarding their intentions
on the whole obligation to the United
States and did not confine his CONVEX
satfon to the loans extended after the
arnistice.
Dispatches from Paris appear to in.
dicate a misunderstanding in certain
quarters as to the exact method of
the United States in pushing the debt
question. There is no division in the
American Government or the Debt
Commission over the question, and the
fact that the State Department, rather
than the Debt Funding Commission, is
raising the question of repayment has
no significance whatever. Secretary
Kellogg has spoken for the Govern
ment, and it manifestly is absurd to
suppose that as Secretary of State he
Is opposing his own views as a member
of the Debt Commission.
Offers Debt Program.
A proposal for settling the foreign
debt problem of this Nation and the
debtor nations of Europe by consoli-
dating the debt of the latter and
funding it on a payment basis of 100
years at 212 per cent interest rate
40
by B. F. Yoakum, railroad executive
and financier, during a conference at
the White House today. Payment
would start two years after the date
of obligation.
Mr.. Yoakum assured the President
that such a plan no doubt would
meet with general approval, not only
in this country, but also in those
countries that owe the United States
money. By 'effecting such an arrange
ment the President would have an
opportunity to set the troubled world
on the path of peace and prosperity,
he declared, explaining that a social
condition inconsistent with American
life and history has been provoked
already as result of tax burden,
which, he contends, is quite as heavy
as that being carried by the people of
Europe. His belief is that a satis-
question would accomplish much of
vital and worldwide Importance
Sees Taxes Reduced
The funding plan would reduce
taxes in the United States, Mr..
Yoakum contends. Besides this the
people Of Europe would then know
where they stood and there would be
a better and more healthy condition
prevailing throughout.
IF Uncle Sam were hard creditor"
Mr.. Yoakum said he told the Presi-
dent, Europe long ago would have
been thrown into bankruptcy or the
quarrels over her obligations to the
United States would have led to re-
suits that would have inflamed the
whole Christian world against us.
There can be no doubt, of course, that
had the United States refused to be-
come identified with the cause of the
hllies and thereby been unable to
bake the loans, the central powers
WOULD have won the war and Ger
,hany today would be mistress of the
xtorld. This momentous fact does not
nbpear to enter into the thoughts of
tile Europeans"
Mr.. Yoakum went on to say that
the taxpayer of Europe is patient and
long-suffering. but he may become
lCoptinped IN pa pe Column 2)