Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-21

lCOnIlnueO FTOnl flT5G IdRe.D
surprise if Mr.. Laval actually sug.
gests such a step.
The understanding here is that ths
sole basis of the Hoover-Laval CONVEX,
Sations will be world economic rehabil-
itaticn. France and the United States
holding between them most of the
worlds gold, stand in z position of spe.
cial responsibility. and are expected
here to approach their decisions with
full realization of that responsibility
1t now is recognized by many officials
in Washington that revision Of ths
war debts must come to the front in
any SuCh discussion.
All along. the United States hts
urged the yardstick of ability pay" IN
dealing with these obligations, and that
yardstick again will be used by Mr..
Hoover when he talks with NJ. Laval
Ability to pay was the basis Of tbs
Dawes plan and the later Young plan
for German PREPARATIONS. 1t was ths
basis on which, in the prosperous post
war years. the United States revised
and refunded the war debts owed here
by the allies. Ability to pay now in .
time of world upset, and prospective
ability to pay, will be the basis on
which Mr.. Hoover lays his views before
his French conferee.
All along too. the United States has
felt that an integral factor in world
economic distress was the immense sum
expended constantly on ornaments.
From this economic point of view, for
the moment, the whole ornaments
problem is under review by the Presi-
dent. France is a large spender in
military preparations. Mr.. Hoover Will
try to make Premier Laval see how di-
rectly and powerfully, in the American
view, this situation is reflected in the
world financial balance.
The question of a political security
pact for France is placed in quite an
other category.
Some reports have indicated that
French statesmen are toying with
proposal whereby the United States
either would agree to come to Frances
aid in war or at least consult with her
upon the threat of war. There is no
intention here of entertaining such
proposal if it ever is made.
At the Paris Peace Conference Prcei-
dent Wilson signed a three-way security
pact with France and Great Britain,
and it was pigeon-holed promptly end
with emphasis by the Senate. At til
London Naval Conference Of 1880. 1
consultative pact was discussed. but e
American delegation would not accept :.
The American Government has az
spect to the Far East. where it has
special interests, but it always places
its relations with Europe in different
class. 1t expects to continue to do SO.
Compulsory Arms Cuts.
Many of President Hoovers closest
advisers hold the opinion that America
will consider no curtailment of war
debt payments unless it carries sharp
reduction in EuroGean military and
naval budgets
Into his conference with the premier,
Mr.. Hoover will carry also the advice OF
his closest counSelors that the Young
plan. providing for German reparations
payments, has broken down as did its
forerunner. the Dawes plan.
With the debt moratorium declared
this year having yet more than six
months to run. the need of an extern
sion is being already bruited about in
informed financial circles.
AS Premier Lavafs ship apprc aches
American shores, President Hoover has
turned his entire attention to prepar-
ing for the discussions. He was COM
PEELED to cancel his plans to attend the
funeral of Thomas A. Edison
Yesterday, in one of the longest con-
ffrences he has held with so important
a group, he dug into world economic
affairs with Secretary Stimson, Under
secretary Mills of the Treasury and
Grafton Rogers, Assistant Secretary OF
State.
This conference followed one in New
York between Eugene Meyer, governor
of the Federal Reserve Bank; Mr.. Mills
and officers of the New York Federal
Reserve Bank
In New York at the same time were
Mr.. Rogers and two representatives CT
! the Bank of France who have preceded
Premier Laval to this country.
| Copyright 1881, the Associated Press.)