Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-02
IBR|TA|N MAY CALL
/ DEBT CONFERENCE
Willing to Summon Young
Plan Nations if Negotia-
tons in Paris Fail.
Continued From First Page)

Continued From First Page0
unquestionably give notice for the post
ponement of all conditional reparations
as provided in the Young plan, and that
this portion of intergovernmental pay
ments will not be forthcoming \
This apparently is a warning that
Germany will declare such Q morato-
rum, as provided under the Young
plan. But the memorandum Of the
American Government also pointed out
that It might not be possible for Ger
many meet the unconditional repara-
ton payments too. But with the I'M
Outstanding that the.unconditional pay
ments were made by Germany, France
would find itself In the following situa-
ton:
France would receive from these
unconditional payments, after prlorltles
have been accepted. approximately
O5, 600, 900. She would be obliged TO
pay:
(s) The guarantee fund of $780,
900 600 under the Young plan.
"(b) One hundred and ten million
dollars to Great Britain and the Unit
ed States approximately.
Whereas her receipts from the un-
conditional reparationS, even If they be
maintained, would be less than one
half of this sum Thus. If the Ameri-
can proposal should fail and the Sus-
pension provisions of the Young plan
be invoked by Germany, then France
will be the loser during the forthcom-
ing year of general postponement by
over $l00,000,000.
u. S. to Contribute $262, zoo, eco.
1t has been estimated that If the
Hoover plan goes through, Frances net
loss in receipts during the coming year,
with a suspension Of intergovernmental
debts and PREPARATIONS. will not be more
than S60000,0 900, although the memo
randum did not set forth the figures
for the contribution which France would
have to make during the coming year
under the operation Of the Hoover plan.
It did point out. however. that the
United States will contribute a total
of 1862 900 ,000 which is the largest
contribution made by any government
under that pan.
The memorandum said that the
United States and France seem to be
agreed on two all important points, as
follows:
First. that France will forego the
, retention of any payments from Ger
many for the period of one year, and
Second that the principle of con-
tinuity of payment of unconditional an
, nuities is recognized while complete re-
lief to Germany is afforded"
Eour points of difference. the
memorandum continued remained to
be ironed out 1t held incompatible
with President Hoover's offer the
French demand that credits established
, by GermanyS continued payment of
unconditional annuitieS be available 10
German Industries instead of to the
government.
Oppose $4,000, 200 Payment.
A similar objection was offered to
the French proposition that S25 ,000,00
OF the unconditional payments be made
, available as credits to Czechoslovakia.
Jugoslavia and Rumania. The note
said one reason. among others, was
that "if any other countries who have
already accepted the Presidents pro-
posal should make similar suggestion
with reference to loans to particular
countries, the reconciliation of all
these differences would be practically
impossible"
Somewhat conciliatory was the Amer
lean attitude toward the French conten-
| ton that suspended German payments
should be refunded in five years instead
of IS. as the United States wants. The
note said that we do not believe that it
would be impossible to reach an agree
ment on this point provided the other
questions could be disposed Of" Then
it added, as an induccment for accept
ance of the American plan:
But. of course, the same length OF
time will apply to the payment on ac-
count CT the American debt"
On the fourth point. the American
memorandum recognized that under the
Young plan France is obligated. in case
of a suspension by Germany of condi-
tional reparat!ons. to pay into the
Bank for International Settlements en-
demand approximately S12o 600, 900. to
be applied in part to increasing pay
ments to the other creditors during the
suspension.
France desires assurance that the
suspension of payments would not throw
upon her the obligation to pay this
guaranteed fund"
We sympathize with France in this
aspect of the question: the American
note said. We think this fear Is
grcundlesS because if all governments
agree to the American proposal, then
there can be no demand of a creditor
government for payment. If France,
however, has a real fear on this sub
ject, then the other governments con-
cerned should expressly free France
from this anxiety"