Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-08
REJECTION GIVEN
WAR DEBT PLANS
Military Expenditure In Loan
Settlements Is Upheld by
Foreign Group.

Continued From First PaeeJ
out Of. for the most part. the use OF
military weapons. has an undoubteo
bearing on the will" of nations gen.
orally toward the broader aspects ot
world peace and stabilized economic
Il is understood here that the foreign
have based their objections
to the American proposal mainly on the
ground that it penalties preparations IN
the interest Of national security. IL
will be readily recalled that President
Hoover In his opening speech 10 the
chamber presented facts and ngureS
proving that the world today has vastly
increased its ornaments over those OF
the pre-war period, despite the probes
sions OF all nations for permanent
peace as expressed in many treaties
and agreements, including the Kellogg
pact, since negotiated. Furthermore,
there have been the efforts OF the
League of Nations to preserve peace and
various conferences on the reduction in
naval ornaments have endeavored TO
express 1t in tangible way.
Thus far no compromise or suostl-
tute proposal, either for the British
German or the American suggestions, has
posal has had the advantage OF several
days discussion and has an organiZa-
ton behind it in which France and
Italy participate. Undoubtedly, how
ever. before resolution on the subject Is
adopted. the American position Will be
made clear in some way ana the
American people will understand 1t.
Silver Resolution Approved.
The Resolutions Committee today ap-
proved a resolution proposing world
conference on the depressed price OF
silver.
The resolution, submitted by q spe-
eial committee of representatives from
the interested nations. was approved
without change. Il was expected TO
reach vote in the plenary session Of
the chamber tomorrow.
The resolution follows:
THE International Chamber OF Com
merce, realizing the serious conse-
auences of the present silver situation
to the economic condition of the world,
considers the convocation during the
current year Of a conference for the
purpose of seeking a solution to the
problem, at which all interested bodies
NAV be heard to be eminently Gedira-;
bic and urges the national committees
to bring the matter TO the attention Oh
their RESPECTIVE governments"
The Resolutions Committee acted on
the measure today shortly aSter Sir
Arthur Balfour, head OF the British
delegation, had given 1t his approval. +
In view of the British attitude It WIS
generally believed the resolution would
be adopted by the chamber without OPP
position.
TariRf Reprisal Threats.
A threat Of tariff reprisals by Eu-
ropean ccuu.rfes If the United States
adheres to her system. of protection was
voiced today by DR.. w. II. Coates,
British economist.
High. tariffs are encouraging the
European movement for closer economic
relations. DR.. Coates said, pointing, ont
as an example the projected AustFo-
German customs nnioaI
There Is grave danger that these
closer unions will provoke even more
bitter feelings against high transat-
.laiitic tariffs" he warned.
Dr.. Coates made SPECIFIC mention Of
automobiles Ia discussing the possible
scope Of retaliatory measures.
When efficiency Is very high, ex-
ports are natural, {" he said 1.-THE rest
of the world wants to benefit by that
efficiency. It wants American cars.
they are so good. But we shall shut
products Of our efficiency, whatever be
their nationality" he said.
War Debts Discussed.
Linked with his discussion OF the
tariff. DIR. Coates brought up the sub
ject Of war debts. declaring that they
can only be satisfied by the transfer of
physical goods or services across inter-
national boundaries. We need not in
Quire how international debts arise.
They are with US. Their liquidation
depends upon the movement of goods.
the export on one hand and the i'm
port must be by the payer of the debt
and the import by the receiver.
When tariffs exclude goods, they
prevent payment Of international debts
OF all kinds Dr. Coates said that the
reduction OF tariffs would do much TO
restore the full circulation of trade traf-
fic, and urged the chamber, through
national committees, 70 work for tarih
relief.
The chamber also heard from Abra-
ham FTOwein, member OF the Federal
Economic Council Of Germany, q de-
Tense OF the projected Austro- German
uAAtOAlf anu Tie hSStTtlOn JklAt IL NJ lie
duty Of the chamber 10 continue its
| work toward elimination Of uneces-
Sary trade barriers"
COncurrently, the Resolutions Com
mittee OF the chamber wIS continuing
work on a declaration as TO the steps
That could b. taken for improvement of
world economic conditions. This ex-
preston goes before the flnal session OF
the Congress tomorrow.
Tariff Issues Discussed.
w. Stuck, Swiss member of the
League Of Nations Economics Commit
tee; J. Duchenois French delegate: M
A. Plate OF the Netherlands. and Floyd
Chalmers, Canadian delegate, also dis
cussed tariffs
Stuck outlined the successive efforts
made since 1927 to effect satisfactory
tariH arrangements and added that
despite the fact results have been gen.
orally negative. he still saw hope for
future agreement
Attempts have been made TO blame
the League OF Nations" he said. for
the meager results obtained in the field
Of multilateral commercial policies. This
Is certainly incorrect.
The League VI Nations can only be
that wlIch the constituent countries
make II. Responsibility must be sought
III the different countries, in their
governments and parliaments."
stuck called for International eco