Evening star., 1925-05-17
FRENCH DEBT HUB
OF SWEEPING j: s.
COLLECTION MOVE
Demand That Nine Debtors
Act to Repay Loans Gen.
ters on Paris.
METHOD OF APPROACH
TO PROBLEM WITHHELD
Officials Think Time Ripe for All
Nations to Devise Payment
Schedule.
By the Associated Press.

By the Associated Press.
After more than three years OF
waiting, the United States Govern
nent has initiated steps to obtain
funding settlements from it's foreign
debtors. The powers to whom this
Nation made war or post war loans,
have been made acquainted with
American opinion that some move
should be made by them toward liqui-
dation.
Although officials of this Govern
ment insisted yesterday that they
held no desire to press unduly for
payments, they feel, and France, Italy,
Belgium, Rumania and Czechoslo-
rakia have been so advised, that the
American Government is entitled to
have funding proposals submitted.
The other principal debtors, Jugo-
slavia, Esthonia, I.atvia and Greece
are aware of the Washington view
also, but it was not made clear last
night whether American diplomatic
officials in those countries have been
asked to carry settlement sugges-
tions directly to them.
French Commission Invited.
In addition to the diplomatic maneu-
verS made with respect to the debts
generally. France has been informed
by Ambassador Herrick that the
American Government would be
pleased If a French commission would
be sent here to discuss a funding pro-
posal. Inasmuch as France is the
largest debtor among those countries
whose obligations remain unpaid,
was regarded as not without some
significance. The French debt ap-
peared to be the hub about which a
gigantic debt wheel revolved.
simultaneously with the disclosure
of the move to develop action on the
part of the foreign nations, an express
sion emanated from official sources
that the American Government could
not permit a. distinction to be made
between loans made for prosecution
of the World War, thossafer~Fpest-Irar
relief or unpaid bills on the sale of
surplus supplies. This was regarded
as an answer to the several state
ments in European capitals in which
mention was made and differences
set down between the various kinds of
loans. The American Governments, it
was explained, cannot recognize any
so-called political loan as being differ
ent from a loan covering the purchase
of war supplies or for use in relief
work.
Details Withheld.
While details of the Government S
move remained undisclosed, there was
evidence that the information given
the foreign powers was tantamount to
a circular note, reminding them that
the American Debt Commission was
created in February, 1922, for the pur-
a., pose of negotiating funding settle
ments, and that only five nations had
ayailed themselves of the privileges
thereby extended. The Treasury holds
demand notes of all debtor nations
save Great Britain, Finland, Poland,
Hungary and Lithuania, to whom 1t
gave financial assistance. A billion
and a half dollars in interest has ac-
crued ION the demand notes.
Official comment on the steps in
itiated at the State Department upon
suggestions from Treasury and Debt
Commission officials, was rare, but 1t
was clearly indicated that the Amer
lean Government was sincerely anX-
ious to reduce the debt questions to
purely business basis. In other
words, the official view was that the
notes held should be converted into
definite term obligations with fixed
dates, rates and payments, however
small the latter might be.
Methods Not Revealed
The secrecy thrown about the ad-
vices to the foreign nations prevented
public knowledge of the methods en-
ployed. In the case of some of the
powers indications were that the
American view had been transmitted
in definite words while with respect
amounted to little more than reitera-
ton by American ENJOYS that the
American commission awaited any
communication the debtor govern
ment desired to make. Rumania,
however, has had direct note from
the State Department.
No government has been recognized
in Russia and Armenia and no men,
zion was made in official statements
of Liberia. which country owes the
United States less than $4,000.
Past Gestures Futile.
The American Government repeat
edly has taken the stand heretofore
that it would not press for collection
of the debts. From time to time
gestures have been made by foreign
powers, but these SO often have avail
ed nothing that it is apparent now
the administration mas decided on
changed policy. Officials explained,
however, that even now it is not the
thought of the Government to force
payment. The responsible authorities
have waited long in the hope that
the debtor powers would make fund
ing proposals voluntarily, but thus
far none has been forthcoming.
Increasing pressure has been
brought to bear on the administration,
especially from congressional quar-
!, ters, in favor of a positive stand by
the nations who owe money to the
United States. Various Senate and
House leaders have spoken frankly
the opinion that delay should not be
tolerated longer and the argument
also has been advanced that if this
Government could not properly await
disentanglement of European affairs
before renewing it's suggestions that
funding settlements were in order.