The Waterbury Democrat., 1931-06-26

Washington, June 26.-(UP).- The United States to-day indicated it's willingness to compromise with the French on their reservations to the Hoover debt suspension plan and announced Ambassador Edge in Paris and Secretary of Treasury Mellon are now conducting negotia- tions to that end.
 The state department issued 9 memorandum relative to the French reply to the Hoover proposals in which Secretary of State Stimson said France had expressed a willingness to forego the retention of any Ger man payments for year." The American memorandum and the French note both were made public by the state department. There are suggestions in the method proposed by the French gov- ernment," Stimson said, which do not accomplish the rull measure of ing to the presidents plan and must, therefore, be the subject of further discussion that will bring the full measure of accorc of which the fine evidence of cooperation in the French note gives every hope of suc- cess"
 The translation of the French note given ou by the department was as follows:
 "The French government has ex- amined with keen interest the pro- posal of the president of the United States and declares itself in cordial agreement with the lofty sentiments which inspired the said proposal.
 "The French government more than any other is desirous of seeing affirmed, in action for the economic reconstruction of the world, a solid arity with which it has always been inspired, both in accepting advance the evacuation of the third Rhine- land zone in exchange for complete and definitive settlement of the pro- gram of separations decided upon at Geneva, September 16, 1928.
 Ut desires to emphasize before world opinion the extent of the new sacrifice which is asked of France after all those to which she has al- ready consented.
 'In response to President Hoov- CTS proposal, the French govern ment is prepared to ask the French parliament, whose intervention is indispensable and whose decision is sovereign, that France provisionally, and for a period of one year, forego the retention of any payment made by the Reich.
 But. in view of the character of the freely accepted and recently signed engagements of the Young plan, the solemnity with which was recognized the definitive and non postponable character of the uncon- ditional annuities which express the permanent necessity of the principle of reparations, there would be great risk of shaking confidence in the value of signatures and contracts, and thus of proceeding contrary to the air in view, If in the proposed suspension of payments the non- postponable annuity should be treat ed like the conditional annuity.
 "The French government em- phasizes, in particular, that formal assimilation has been established be- tween the private debt of the Reich (Young and Kreuger loans) and the unconditional annuity not yet mobil- ized.
 ITO suspend the payment by Ger many of the unconditional annuity while permitting that the Young loan disposed of to the public should continue to be serviced, would go directly against a fundamental prin- ciple and express stipulations.
 "The French government, there fore, considers that there is a moral interest of the first order in not post poning in any way the payment of the unconditional annuity, even dur ing the period contemplated by Pres ident Hoover.
 The French government, being desirous of collaborating fully in every effort made to attenuate the consequences of the present crisis, believes that it should point out. in the very interest of the success of this effort. that the mere general sus- pension of payments would furnish an inadequate remedy
 "The danger now threatening Ger man economy and more generally, European economy. have another origin and are especially due to i'm. portant restrictions of credit and withdrawals of foreign funds. The solution of the German crisis. there. fore, does not appear to lie only In the diminutien Of tho charges on the budget Of the Reich but in an extens sion of credit.
 That is why the French govern. ment declares It's readiness, subject Co the approval ef parliament, Co place at the disposal ef the bank ef international settlements A sum equal Co iis share for one year of