Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-01

benefits under the Hoover plan. Not
only would Germany be expected TO pay
within the five-year period the repa-
rations which would be postponed dur
ing the coming year. bpt all the other
postponed intergovernn1ental debts, in
Guiding those of the United States,
would have TO be paid within Q Ave
year period
The United States is asking that
these postponed payments be repaid In
the course Of Is years. To this the
French have replied that at the end
Of the flve-year period suggested by
them they might be willing TO extend
the payments for another five-year
period and at the end of the 10 years
for still another five years. To the
United States Government this docs not
appear to be feasible course. Further
more. the French would make IL q con-
dition for further extension that the
Young plan relating to reparations be
in full force at that time.
In the statute of the Bank Of Inter-
national Settlement there is q clause
that loans shall not be made by the
bank to governments. This has been
advanced by the French in support Of
their contentious that the German
repsrations paid into the bank this
year may not be reloaned to the Ger
man government. The American posi-
ton, however. is that this difficulty
could be ironed out II the French were
willing.
Unconditional Payments.
Another condition made by the
French relates to the so-called guar
antee plan under which France re-
ceivsd the major portion of the Ger
man unconditional reparations, to be
epp'ied in the devastated region of
France. The French, needing this
larger proportion of the German I'M
conditional payments, agreed that II at
any time Germany should declare .
moratorium and stop payment OF rep
arations, the French would put in the
Bank of Inferno tional Settlement $780,
000,0 900 marks. which would be used in
measure 10 recompense the other ma
tons receiving reparations, tempo
rarily.
France is now demsn ding that 1t
shall not be compelled to put up this
money if Germany declares q mora
forum in the future. but that the
money which is to be loaned Germany
by the Bank of International Settle
ments under the proposed plan shall
be the guarantee fund This is the
money which Germany herself would
pay in unconditional reparations.
The American Government takes the
position that it has nothing whatever
to do with the question of this guar
antee fund and that it Is not in its
present negotiations with France 60
ing into that subject. 1t was explained
today that this is matter which
France must negotiate. If it desires.
with Great Britain. Italy and the other
nations which receive repsrations from
GERMANY and which are si0natOrv IN
that plan.
Might Compromise.
This last condition advanced by the
French is one TO which that govern
ment is reported TO be adhering firmly.
1t was made clear today that the
United States Government might COM
Is years it proposes as the period in
which the postponed payments of inter-
governmental debts may be paid. This
Government. however, will insist that
the money paid by Germany as uncon-
ditic nal repsrations be loaned by the
Bank of international Settlement to the
German government in full. 1t also
will insist that it has nothing TO dc
with the guarantee fund already dis
cussed. and that France must take that
up with other nations II it desires.
The Belgian government in its reply
to the United States, accepting in
principle the H over plan, said
The Belgian government has re-
ceived with pleasure the proposal OF
the President Of the United States as
an act of high significance. 1t regards
1t is inaugurating great enterprise Of
international solidarity which tends to-
ward the restoration of world economy
and the bare prospect of which has al