Evening star., 1931-12-15
WAR DEBT REPORT
NO SURPRISE HERE
Favor of Basle Experts for
Moratorium Extension
Was Expected.
BY CONSTANTINE BROWN.

The recommendation of the Commit
tee of Experts sitting at Basle for a
further extension of the moratorium on
Germanys conditional payemnts is
fully expected here.
The American financial experts have
never doubted that committee formed
by the best known economists in the
world could do anything else than rec
ommend further moratorium.
The Basle Committee, however, Is
not allowed by the terms of reference
of the Young plan to pass Judgment
on the extension of the moratorium 1or
the unconditional payments which fall
due on July l, 1882.
1t has, however, the right to express
its opinions on GermanyS general
financial situation and will leave the
final decision on payment Of the un-
conditional portion of reparations next
year to the interested governments.
Trade Shows Surplus.
The committee of financial experts
Is now surveying GermanyS general
economic situation and her balance Of
trade. Heretofore the German foreign
trade has been showing substantial
surplus From this surplus, which is
always expressed in foreign exchange,
Germany has to take care of the inter-
est on foreign debts and the payment
of the unconditional slice of reparations.
Whether the amount yielded by Ger
manys foreign trade is sufficient to
cover both expenses is a matter which
the committee will have to report to
the interested governments. In view OF
the fact that Great Britain has adopted
a tariff wall and because many other
nations have substantially increased
their tariffs since last year, it is ex-
pected that in the coming year Ger
manys balance of trade will be less
favorable than last year,
Consequently it is fully expected that
the committee of financial experts Will
indicate that some way out should be
found to relieve Germany for the COM
ing year of the burden of further repa-
ration payments. Whether the question
of the priority of the private debts over
the reparationS will be mentioned in
the report at all is unknown. This
question is so controversial that it is
believed that the bankers will leave it
carefully alone.
The impression in Washington is
that even the French representative
Mr.. Charles Rist, will agree with his
other colleagues in recommending TO
his government a sympathetic consid-
GRAFTON of the entire reparation ques-
ton Nobody knows, Of course, what
the attitude Of the French government
is going to be when it receives the
bankers report.
Further Delay Possible.
1t is thought here that the French
government might look upon the whole
matter exclusively from an economic
angie, and it is conceivable that the
Laval cabinet might agree to further
postponement Of the German condi-
tional payments No final decision is
likely to be reached. however, until the
French government finds out what cor
responding reduction of its debt pay
ments to the United States can be ex-
pected from this country.
Premier Laval has clearly indicated
that any re6>.ltion of the German rep
arations must have Its counter part in
a proportionate reduction of Frances,
foreign war debts. Rightly or wrongly,
the French people have been led to be-
IleNe IlldC FEeSlueuI mower Hdu lldoe
this promise to Mr.. Laval during the
latters visit to Washington
And here the economic question Of
reparations takes a political aspect. The
American Congress has clearly indicated
that there will be no curtailment in the
foreign debts unless the debtor nations
agree to a substantial reduction of arma-
ments. Consequently the entire matter
of debts and reparatiorS reductions is
subject to the willingness of the
European nations to limit their arma-
rents to such an extent as to satisfy
the people of this country that any
moneys which might be remitted will
not be used for armament purposes.
The whole matter of Germany's pay
ments to the allies seems therefore to
hinge on the results of the coming
general disarmament conference.