Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-28
MELLON REPORTS
DIRECT TO HOOVER
Castle Says "Things Going
Along Nicely" After Confer
ence at White House.
BY G. GOULD LINCOLN.

tary Mellon Win the french OFFICIALS,
looking to an adjustment of the differ
ences between that government and the
American Government over his proposal
for a years suspension of the inter
governmental debts, were the subject
Of conference held at the While House
yesterday afternoon by President
Hoover.
With the President we're Acting Sec
rotary of State William Castle, jr., and
Acting Secretary of the Treasury Ogden
Mills. During the course of the con-
ference which lssted>for several hours,
the telephone was called into service to
talk with Mr.. Mellon In Paris.
Things are going along nicely, was
the comment Of Acting Secretary Castle
as he left the White House following
the conference, saying that Mr., Mellon
had been heard from.
Mr. Mills confirmed the report that
there had been direct communication
with Mr. Mellon, and said that he him.
self had talked with the Secretary OF
the Treasury during the day.
The Acting Secretary Of the Treas
ury, Mr. Mills, denied there was any
"pessimisn" over the situation In Pans
He declined to comment. however. or to
had been received from Secretary
Mellon.
Delays Start for Rapidan.
The intense interest here in the situ-
alton now developing in Paris caused
the President to give up his plans 10
90 early today to his camp on the Rapl-
dan, where he planned to spend the
week end. It was after pm when
the President finally left the White
House for the camp.
The report that the heads of the Ger
man government had been invited TO
come to Paris early this week for con-
ference was the subject. OF comment
If a formula can be worked out which
is satisfactory to both France and
Germany it is likely to be satisfactory
to the American Government whose
prime purpose In making the offer of
the debt suspension at this time Is to
help Germany to her feet in the crisis
which has confronted her in recent
weeks.
The French are anxious it is under
stood here, to have definite assurances
from the German government that
there is to be a continuation Of the
Young plan covering the reparation
payments and that the suspension of
debt payments fer a. year is not to be
the beginning Of the end Of that plan.
It Is for that purpose that the French
have insisted in their counter proposal
to that Of President Hoover that the
unconditional reparation payments by
Germany be made to the Bank of In
ternationa1 Settlements, even though
the greater part of the money so paid
in may be loaned back to Germany i'm
nnediately. Such assurances can be
given only by the German government,
It Is stated, and cannot be given by the
United States Government, which has
nothing to do whatever with the Ger
man reparations.
Laval Invites Germans.
The approaching visit of the German
chancellor, Bruening, and Foreign Min
lister Curtius, who were invited late yes
terday by French Premier Laval to
Paris early this week for a conference,
Is fraught with important possibilities.
The announcement of the invitation to
the German officials was made by
Premier Laval following a conference
with the German Ambassador This
was subsequent to the conversations of
Premier Laval with Secretary Mellon.
If definite and friendly understanding
can be reached by the heads of the two
governments, German and French, a
great deal will have been accomplished
Many details remain to be worked out
IN connection with the final agreement
regarding debt suspension, which will
involve several nations in addition to
France, Germany and the United States
It is not expected that these can be
disposed of overnight, but that they
will require patient consideration for
days. Italy and Belgium. and particu-
larly the latter, both have their prob
lens in connection with the debt sus
pension plan.
Vote Of Chamber Favorable.
The fact that the French Chamber
of Deputies on Friday voted over
whelmingly to support the French gov
eminent in its cordial acceptance of
the Hoover proposal for debt suspen-
sion, even though it offered reservations
calling for the payment into the Inter
national Bank Of Settlements of the
German "uncenditional reservations"
was regarded here yesterday as favor
able sign.
Furthermore it was pointed out that
II there had not been such vote Of
confidence in the French government
by the Chamber of Deputies, the United
States would have been in a dificult
position when 1t came to negotiating
with a cabinet that might fall at any
time. The opinion was expressed here
that the United States could proceed
now with the negotiations with the
feeling that the French cabinet was in
a position to make the outcome of the
negotiations stick" when they were
later submitted to the Parliament
Agreement Is Seen Soon.
,Fhe belief persists here that ulti-
claSsly, and before very long, an agree
ineat which is satisfactory to this. Gov
ernment will be worked out in Paris
IN the conferences which Mr.. Mellon
and Ambassador Edge are conducting
he Of
dent.
The reply of the United States Gov
eminent to the French note on the debt
SUSPENSION plan will be drafted in the
light of the conferences which are now
being held in Paris, and probably will
contain a statement Of the adjustments
which ere expected to be reached in
those conferences 1t was said at the
State Department yesterday 1t might be
several days, three or four, before the
reply of this Government to the French
noe is prepared and sent on its way.
The White House issued a statement
late yesterday denying published re-
ports to the effect that President Hoover
is planning for some kind OF an agree-
ment with the governments of South
America TO relieve the financial situa-
ton In these countries. The statement
follows:
There is absolutely no foundation
for the stories circulated in the press
to the effect that this Government Is
considering plans for or discussions cen
corning South American debts These
remain as do all private debts, so'ely
a relationship b-tween the debtors end
creditors. Our bankers have given aid
during the depression to various South
American countries and so far as the
administration Is aware. these countries
are making every effort fully to main