Evening star., 1931-06-26

The text of the note from the French
government In reply to the Hoover debt
plan, delivered at the State Department
on June "a by the French Ambassador,
was as follows:
THE French government has ex-
amined with keen interest the proposal
of the President Of tire United States
and declares itself in cordial agreement
with the lofty sentiments which inspired
the said proposal.
The French government, more than
any other, Is desirous or seeing affirmed,
in action for the economic reconstruc-
ton Of the world, solidarity with
which 1t has always been inspired, both
in accepting the successive reductions
in the German debt and in executing
in advance the evacuation of the third
Rhineland zone In exchange for o COM
plete and definitive settlement Of the
program Of reparations decided upon at
Geneva September is, 1928.
1T desires to emphasize before world
opinion the extent of the new sacrifices
which is asked Of France after all those
to which she has already consented.
I'm response to President Hoover'S
proposal, the French government Is
prepared to ask the French Parliament,
whose intervention Is indispensable and
whose decision is sovereign, that France
Professionally, and for a period Of one
year, forego the retention Of any pay
ment made by. the Reich.
Risk Of Shaking Confidence.
But. in view Of the character Of the
freely accepted and recently signed en-
gagements of the Young plan, the
the definitive and -poStponable
character Of the unconditional annui-
ties which express the permanent ne
cesSity of the principle of reparattonS,
there would be a great risk of shaking
confidence in the value Of signatures
and contracts. and thus of proceeding
contrary to the aim In view, II in the
proposed suspension of payments the
on-poStponable annuity should be
treated like the conditional annuity.
1.-The French government emphasizes,
In particular, that q formal ,aSSimila-
tion has been established between the
private debts of the Reich (Young and
Kreuger loans) and the unconditional
annuity not yet mobilized.
ITO suspend the payment by Ger
many of the unconditional annuity
while permitting that the Young loan
disposed of to the public should con-
tinue to be serviced, would go directly
against a fundamental principle and
express stipulationS. a
1.-THE French government, therefore,
considers that there Is moral interest
Of the first order in not postponing IN
any way the payment Of the uncondi.
tional annuity. even during the period
contemplated by President Hoover.
Cite Extension Of Credit.
"The French government, being de-
sirous Of collaborating fully In every
effort made to attenuate the conse-
quences Of the present crisis, believes
that 1t should point out, in the very
interest of the success Of this effort:
that the mere general suspension OF
payments would furnish an inadequate
remedy. The dangers now threatening
German economy and, more generally,
European economy, have enother origin
and are especially due to important
restrictions of credit and Withdrawn
of foreign funds. The solution OF the
German crisis, therefore, does not ap..
pear to lie cnly in the diminution OF
the charges on the budget OF the
Reich, but in an extension Of credit.
"That is why the French govern