Evening star., 1926-11-05
ON DEBTS
MAY REVIVE ISSUE
French Socialists Proposal
to. Borah Brings Renewal
of Senator's Stand.

Proposals of French Socialist leaders
for complete cancellation Of all inter-
allied war debts and all German repa-
rations except the 10000, ,000,0 900 gold
marks represented by the German
railway Industrial bonds, reported in
Paris dispatches today as having been
addressed to Senator Borah of Idaho,
may reopen the debt cancellation issue
in it's entirety before Congress con-
venes next month.
Senator Borah today declined to
comment directly on the proposal, In
the absence of the communication said
to have been addressed to him on be-
half of the Socialist party by Vincent
Auriol, member of the debt funding
mission to Washington and former
chairman of the financial commission.
He did say, however, that when the
communication reaches him, he hoped
it would provide vehicle for frank
and full discussion of the debt ques-
ton, linked as it Is with cancellation.
There is one main objection in the
purported Auriol proposal, as Senator
Borah views 1t. and that is the sug-
gestion that the 100000, 900 marks
would be administered by an lnterna-
tiCnal committee and would go en-
tirely to France and Belgium as par
tial compensation for actual war
damages.
Cancellation Must Include All.
Senator Borah's views on the ques-
ton of cancellation have not changed
since his public reply last August to
the appeal of Clemenceau for cancel
lation of the French debt to the
United States as one means of brlng-
ing about the economic recovery OF
Europe. Senator Borah said today
that his reply to Clemenceau was not
in the nature Of proposal nor was
it intended as such. What he did
seek to convey to the French mind
was that If there was to be cancela-
ton of the debt of one country, there
should be complete cancellation of all
interallied war debts and all German
reparations. The economic recovery
of Europe on the basis of debt can
collation., he claimed, could not be
brought about without including Ger
man cancellation Of German repara-
tiOns.
The proposal now reported to have
been advanced by the Socialist AuriOl
fails to meet squarely the views of
Senator Borah on complete concella-
ton. Without wishing to comment
directly on a purported plan which he
pretated through meager second hand
reports. Senator Borah, however, left
no room for doubt that the Auriol
suggestion fails to hit the mark.
1t would wipe out the interallied
debts, If agreed to by all the nations
involved. he pointed out, but it would
impose upon Germany the stupendous
burden of financing France and Ger
many to the extent Of 100000 100000
marks. In other words, he indicated
the suggestion for debt cancellation is
coupled to condition that would
clearly be unjust to Germany.
M. Auriol argues that France and
the United States, by agreeing to his
proposition, thus would be making a
considerable sacrifice in the interests
of world peace, but he believes both
countries, given an appreciation of
the nobility of the aim, would not
hesitate. If Senator Borah consents
to support the proposal in the United
States-and it is not apparent that
Senator Borah will consent-M Au-
riol is reported to have pledged his
promise that the French Socialist
party will support it in France.
Opposes Guaranty Clause,
NJ. Auriol's letter Is said to lay en-
fees since the war and SAYS French
Socialists recognize fully the French
war debt and are even ready to vote
ratification of the present agreement
with the United States, provided
France is given the same advantages
which the Dawes plan gave Germany,
that is to say. a transfer clause
guaranteeing France against ex-
change difficulties resulting from fu-
ture debt payments.
While Senator Borah is extremely
hopeful that France will ratify the
debt pact this Winter, he has no sym
pathy with the proposed guaranty
clause" There is no parallel between
the proposal, he indicated, and the
Dawes guaranty provision. An inter
allied commission administers the fis-
cal system of Germany, he reminded,
and its success. is to the advantage
and interests of all the allies. On the
other hand, the proposal of M. Auriol
seeks a guarantee for single nation
which has sole control over its fiscal