Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-05
|DEBT AGREEMENT
SEEN TOMORROW
German Reparations In Kind
Only Point Remaining
to Be Settled.

CONTINUED From First Page.)
o'clock this morning, French time.
This Is the second night in succession
that the veteran Secretary of the Treas
ury has conferred with the French until
the early hours of the morning. He
talked with oficials here for about 10
minutes on the telephone.
AS the matter stood last night, 1t
appeared that the French government
and the American Government had
reached an understanding on all the
major points involved in this discus
sioGls Of the debt plan except Sthe pay
ments in kind of German reparations.
The American Government has In
mind, 1t Is said, the need Of as COM
plete a suspension Of all payments for
Germany as Is possible during the com
ing year, and for that reason Is anxious
that any agreement regarding payments
In kind shall conform to the general
principle of the American proposal.
Memora ndum Cabled.
Just how extensive are the payments
in kind, which the French are main
tanning should be paid, oficials here
were unable to say last mighty They
expect to be more fully informed by
the memorandum which was being
cabled from Paris last night. In dis
cussing the payments In kind here. 1t
has been roughly estimated that they
might run to $35 ,00O, 900. covering con-
tracts for materials already entered
into. Under the reparations plan, Ger
many has been permitted to pay In
kind, in goods instead Of in money, to
meet part of the payments due.
Most Of the questions which have
caused delay in an accord between the
governments of the United States and
france on the debt suspension plan
have arisen out Of the complicated ma
chinery Of the Young plan, q plan in
which the United States itself has no
actual part, It was said last night. For
example, included In these knotty ques-
tons have been the relationship Of the
French to the guarantee fund; the mat
ter of the loans to the Central Eu-
ropean nations other than Germany
insisted upon by France, and the mat
ter Of the payment Of reparations In
kind.
Guarantee Funds, Problem.
The guarantee fund provision of the
Young plan was from the start one
of the main difficulties in coming to
an agreement with France. The French
proposed that they be relieved Of pay
ing the guarantee fund into the Bank
for International Settlements in the
event that Germany should declare q
moratorium next year. at the end Of
the debt suspension period, and that
the money paid by Germany into the
Bank for International Settlements this
year be substituted for the guarantee
fund. But this did not appear in any
at - -
since II 1t was in such condition next
year that 1t could not pay its condi-
tional reparations, 1t would then be
faced with the need of paying twice the
amount of its unconditional separations.
Launched just two weeks ago. the
Hoover plan met immediate and hearty
response from all quarters Of the globe.
It brought immediate and favorable
reaction on the markets here and
abroad. It re-established confidence at
time when there was danger of finan-
cial collapse, starting with Germany
and knocking the pins from under other
nations. until the whole should 90 down
like q pack of cards. 1t sounded q new
note and thrust America into the
leadership at a time when leadership
was desperately needed.
Reply Disappointing.
Next to the United States, France
stands to make greater sacrifices than
other nations under the debt suspen-
sion plan. Her assent to the plan was
Of great importance. Her FIRST reply,
while cordial in tone was a disappoint-
ment, in that 1t did not subscribe to the
underlying principle of the Hoover plan,
the suspension Of all debt payments for
the period of one year, nor provide the
fullest relief for Germany. regarded as
the weakest link In the chain.
The debt suspension plan, although
delayed somewhat by the negotiations in
Paris. will become effective as Of July /,
and Is to run for year, ending June
30. 1882.
The Hoover plan was stated clearly
and concisely in the statement made by
the President on June 20. announcing
Americas offer to the world. He said:
The American Government proposes
the postponement during one year Of
all payments on intergovernmenta
debts, reparations and relief debts, both
principal and interest, Of course not in
Guiding obligations Of governments held
by private parties
The President said also that this
Government would suspend for one year
all the payments due 1t by foreign
governments. conditional on a like post
ponement of all intergovernmental debts
owing the important creditor powers.
Germany Chief Beneficiary.
Germany will be the principal bene-
ficiary under the plan. end Germany,
1t was explained, was In greater need
of assistance than any other nation,
facing a collapse financially and gov
unless there should be some
measure of aid from outside. Her total
reparations payments, growing out Of
the World War, during the coming year
amount to something in excess of
$400, 900 900. However, because Of GER
tain cash payments which under the
Franco American agreement now made,
she will not benefit by quite that
The United States stands to make the
principal sacrifice during the coming
payments due this coun-
try by debtor nations totaling $780,
100000. The principal and inter-
est due from the debtor nations to this
country on the funded war debts
to about SPAS, 000, 900. In ad-
dition, the United States will forego /
payments OF approximately 100000
from Germany on account Of army
costs and $4,000, 900 on account Of Ger
man claims payments. without the
.Aoo'cA PAoAA Oi.AS So.A~y wOuA0 AcCcNS
In round numbers the following pay
ments from our debtor nations: $780,
000, 900 from Great Britain, $50, 900 900 |
from France, $15,00O,000 from italy, |
So 100000 from Belgium, $1,000, 900 |
from Poland, $4,000 from Czecho-
and lesser amounts from sew
eral others Of the smaller European
German Payments $373,600,0O
The renaratjons which Garnnarv \