Evening star., 1931-06-24
Paris, Replying,
Still Uphlolds
Young Plan.
OFFICIAL TEXT
NOT REVEALED
Presented to Edge;
Laval to Make
Terms Known.
BY the Associated Press.


PARIS, June 24.-The Associated
Press was informed today that in
accepting the principle of Presi-
dent Hoover's moratorium pro-
posal France has advanced a
counter suggestion with reference
to Germany's unconditional repa-
rations annuities.
France thinks these annuities
should be deposited with the Bank
for International Settlements and
made available for the financial
rehabilitation of Germany and
perhaps of other countries.
France believes that this Is a
splendid opportunity for con-
Structive cooperation between
herself and the United States for
the economic and financial resto-
ration of Europe.
The French note is couched
in more conciliatory terms than
French newspapers predicted, but,
as it suggests the necessity Of
compromise, 1t is believed in inter-
national circles in Paris that the
question is not settled, but has
entered the stage of discussion,
which. League of Nations circles
here trust, will result in agree
ment.
The French clearly regard the
Young plan as a citadel which
should not be damaged in any
way, lest 1t might be totally de-
Stroyed.
The French reply contains four
typewriter pages and is marked
throughout by expressions Of
Frances intense desire to CO.
operate with the United States.
Reply Handed to Edge.
The French reply was handed to Am
bassador Edge by Premier Laval this
afternoon.
Accompanied by ]. Theodore Mar
riner, counselor of the embassy, AM
baSsador Edge discussed the document
for half an hour with the premier.
The French government transmitted
the reply this afternoon to Ambassador
Claudel, at Washington, who is ex-
pected to turn 1t over to the State De-
partment late today.
Premier Laval was understood to have
given Ambassador Edge detailed ex-
plantations Of the contents, which viii
be given out Friday.
Usually well informed quarters this
afternoon stated that the French reply
agrees with President Hoover that
something must be done to aid Ger
many, and thus Europe. but diSagreeS
with the Presidents plan Of carrying
out the proposal.
Ask Unconditional Payments.
The reply, it is understood, makes an
effort to maintain the integrity of the
Young plan and the unconditional rep
arationS payments which France con-
siders 1nviolable.
The method suggested in order to ar
rive at this end Is that Germany pay
her unconditional payments to the
bank for International Settlements at
Basel, which would turn back part Of
them In the form Of short-term loans to
Germany and for the other creditors Of
Germany guaranteed under the Young
plan.
The French reply was said to have
expressed readiness to collaborate with
the United States in elaboration of the
Hoover principle and further to suggest
a workable understanding between
France and the United States on mat
ters untouched by President Hoover
The French government considers
that its reply fulfills the hopes Of Presi-
dent Hoover The question Is raised
here whether, In view Of the French
suggestions as to the method of carry
ing out the Hoover proposal, the reply
will be so considered In washington.
Expected Reply UnfavOrabIe.
Meanwhile, it was learned that the
United States Government has m
formed France that the conditions
which she Is expected to attach to her
acceptance Of the proposal probably
would not be regarded with favor In
Washington.
There was immense interest when the
French cabinet met today as to
whether 1t would adhere to its counter
elaborated yesterday and communicated
70 Ambassador Edge last night.
This conditional acceptance is based
upon frances belief that, the Young
plan Is sacred to her financial structure
and that it. should not be interfered
with. She holds that the Bank for
International Settlement should be the
intermediary for the reception Of Ger
many's unconditional annuities and
that the money should be used by the
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