Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-09
i. s. TO KEEP DEBTS
LINKED WITH ARMS
President Will Press Views in
! Approaching Conference
With Laval.
Ry the Associated Press.

NJ the Associated Press.
Reductions in war debts payments
will be considered by the United States
only if European nations in turn effect
drastic curtailments of ornaments.
President Hoover intends that the
two subjects shall remain individually
linked In his approaching conferences
with Premier Laval Of France he expects
to press his views that disarmament and
q naval holiday cannot be logically sepa-
'ated from the question OF war debts and
the world financial condition.
There has been no indication, how
ever. that the administration would
enter into a complete revision OF war
debts.
Mr.. Hoover recalled only Tuesday
night at his conference with congress
sional leaders that in proposing the in
tergovernmental debt moratorium he
had opposed cancellation of war debts.
Attitude More Clear,
The Chief Executives attitude has
become increasingly clear here as the
time nears when Premier Laval VIII oe-
part for his epochal visit to this coun-
try. .,..
lust Yesterday, President Hoover again
voiced his emphatic disagreement WIN
outlaws for ornaments at the expense OF
productive enterprises.
In an address before the Fourth Pan
American Commercial Conference, ne
pointed his attack at loans to nations
for balancing budgets or for military
equipment or war purposes.
He recalled that in 1927 ADDRESS ne
had said: The financial transactions
between nations must be based upon the
primary foundation that money trans
ferred is for reproductive purposes
Il repeat this today" Mr.. Hoover SAID,
''because had it been followed during
these past five years our problems
throughout the world would be far dif-
ferent, our difficulties infinitely less.
great number Of blessings
would follow to the entire world
Almost as he spoke the coming
Anglo French discussions were the sub
iect of a conference in Paris between
Premier Laval and Lord Reading. Brit
ish foreign secretary. Laval said 1t was
devoted to a frank and complete ex-
change of views of the world situation
and the measures best adapted to the
amelioration of existing conditions"
Bank officials on Way.
Meanwhile. two high officials of the
Bank cf France left for this country
to study in advance proposals of Presl-
dent Hoover. The apprehension OF
French public opinion that President
Hoover would propose to the premier
further suspensions CT German repara-
lions payments was reflected IN Paris
newspapers.
Of I7yoy
greatest banks came the assertion that
nrolongation of the moratorium beyond
next June would involve less for
France of $500 900 900 francs (S1,000,-
900 OOO) annually and would mean the
government would have to raise an
equal sum in order to balance the
budget.
In his insistence that European ar
rnament limitations shall be the price
of further relief in war debts by
America, President Hoover has the out
spoken support CT Chairman Borah OF
the Senate Foreign Relations Com
nnittee.
Generally among Congress members,
however. Judgment is being reserved on
proposals to extend the moratorium.
This was emphasized by Senator Bing-
ham, Republican, Connecticut one Of
the congressional leaders who discussed
the question with Mr.. Hoover Tuesday
night at his bipartisan economic con-
ference.
Moratorium Extension UnoppOsed.
Bingham denied the congressional
ccnferees had definitely opposed a
moratorium extension. Asserting 1t is
Obvious that President Hoover will try
to get the best bargain possible" from
Laval the Connecticut Republican said
"the conferees reserved their judgment
until they see what is worked out and
what is necessary in the way of an ex-
tension.
Many American bankers with foreign
investments are known to favor
lengthier moratorium Among num-
Der of financial experts in Congress
and the Government the view also is
held that Germany will be in little bet
ter condition next July 10 meet repara-
tons payments than she was the past
Summer, when the moratorium was
declared.
The fact is not being overlooked that
she has the right under the young
plan to suspend payments for two years.
Thus, in seeking general disarmament,
America is asking a definite benefit in
exchange for what may be inevitable
anyway.