Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-12-26
CUT IN PREPARATION
INTEREST IS URGED
Reduction of Rate Suggested
as Aid to Payment
by Germany.

BY Radio to The Star.
PARIS, December &c. - French
opinion generally is not hostile To the
report OF s. Parker Gilbert. agent
seneral of Preparations. because every
body realized it is necessary, sooner
or later. to determine exactly the
snlount Germany owes.
But. as in England. French official
circles discuss the question guarded
", particularly since the French
translation of the report is not nm
iShed and the experts hence are una
HE TO examine all its complexities.
Furthermore, the government Is
anxious not TO agitate the separations
question before the elections next
Spring-there are too many other
financial and political difficulties with
cut adding that one.
Conflict I'm Agreements.
What astoniShed everybody was the
attacks launched on the report before
most French officials had even read II.
II is generally thought that Senator
Rerenger took thA stand as the best
means of defending his own agree
fnent with Secretary Mellon on the
war debt, That agreement broke his
.rief diplomatic career and weighs
heavily on his political future.
pay as scheduled in the London agree
ment of 1921, namely. $S3,eoo. ooo, 600
st 5 per cent, the Dawes plan annul-
ties, even if continued forever, would
never accomplish il. Therefore. IL IS
difficult to reconcile the 1921 agree
ment with the Dawes plan, though
both have been accepted by all gov
ernmeuts concerned.
II the interest on 500 600. GOO 900 is
fixed 1T the same rate as the Mellon
BerenCer agreement, namely a. per
cent, then Germany must pay 81 $780,
200 600 annually instead Of S6s5. GOO,
and this is likewise impossible because
il represents two-thirds of the whole
German budget
In order to reconcile the 1921 agree
ment with the Dawes plan, the inter-
est on the $33 900 COOS 900 would have
TO be reduced to approximately three
fourths of l per cent in order to amor
the the reparations in c. years. Per
hans that solution will he adopted.
particularly since Washington con-
sinues to refuse 10 link the repara-
lions question with war debts.
Other Problems Raised.
This German foreign debt OF $685..
ea0 900 600 is indisp snsable TO the
financial equilibrium of Europe and
the world.
Chancellor of the British Ex-
cheouer Churchill was asked recently
in the House of Commons how the
various countries compared with re-
spect TO per capita debt. He an
swered that Great Britain owed $3.50
per capita. France $3.50. United States
$3.50 and Germany mot including rep
arations) ST..
1t is interesting TO note that ii
$33 coo. 600 600 were added TO the Ger
man figure il would make Germany's
per capita debt equal 10 that of
France. though more than third be.
low Great Britain's.
But MIR. Gilbert's report raises
many other problems, notably the
question Of foreign control and guar
ntAes. as well as gradual suppression
OF the transfer commission. In the
European view these matters are
linked with the concentration of
the German debt. the placing Of Ger
man industrial and railway bonds on
the international market. etc. On
these technical points no satisfactory
comment can be made until the text
has been thoroughly digested and dis
c,sssed by German and allied experts.
fCopyrighf 1872