Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-02
An Olive Branch to France.

An UllVe Brancn TO FRANCE.
President Hoover's eagerneSs for en-
actment of his debt holiday plan is ex-
emplified afresh by the memorandum"
submitted by the United States yester-
day and undergoing consideration by
the French cabinet today. The Ameri-
can communication breathes the spirit
Of accommodation, though out of six
points Of disagreement between Wash
ington and Paris four are still left for
negotiation. Notwithstanding that there
has been nearly week of discussion
between Secretary Mellon and Ambas-
sador Edge and the French authorities,
without settlement of major differences,
nobody concerned in the fateful con-
troversy is ready to abandon confidence
In ultimate agreement In diplomacy,
while conversations continue hope en-
dures.
The latest message waited across the
Atlantic from the Potomac is concilia-
tory, but is distinctly not lacking in
sharp emphasis on those points which
BILE minimum. We are willing that
Germany should pay her unconditional
PREPARATION annuity into the Bank for
International Settlements, as France
proposes. We are not willing that such
payment shall be Immediately loanable
both to Germany and other Central
European states in need of financial
aid. The United States on this score
suggests that non-German countries
might be accommodated by the Inter-
national Bank and various central
banks of issue as separate transactions.
Washington does not insist upon its
original position that Germany should
be granted a full twenty-five years to
It would be satisfied with a lesser
period.
Otherwise, by and large, Uncle Sam
stands pat on the project President
Hoover put before the world on June
20. There is no semblance of recess
sion from the basic principle that Ger
many should have the full benefit of
a complete suspension of debts between
the nations and ample time to refund
the interrupted years annuities.
Outstanding in the epistolary olive
branch now held out almost as last
attempt to harmonic Frances viewpoint
with our own are the notes of warn
ing and reminder which distinguish it.
at must be remembered" Washington
pleads, that Germany is in the most
difficult economic situation of any
country" That being the case, France
is adjured to bear in mind that the
failure of the Hoover program will in
evitably cause the Germans to take
advantage Of the moratorium the Young
plan permits her to declare on all con-
ditional PREPARATION payments. Our mes
sage to Paris is silent on the political
consequences that might coincide in
torium-the peril of Communistic
outbreak that no European country
cares to contemplate.
Figures talk, in the French language
as well as in others. Perhaps the most
telling argument in the American
memorandum" is the one that ex-
plains how France would suffer If the
debt holiday collapses. Assuming that
unconditional payments are maintained,
it says, and Germany exercises her
right of moratorium on postponable
payments, France would receive $685.
100000 through the unconditional an
nuity. At the same time she would be
obliged to pay into the Bank for IN
ternational Settlements the guaranteed
fund Of $1o6,0oo,o0o required under the
Young plan and about $110,000,000 due
to Great Britain and the United States
during the year under the terms of
the French war-debt funding settle
ments with those countries. France, in
short, would be out of pocket for the
moratorium year to the tune of SILL
100000 if she did not conform to the
Hoover scheme.
The French people, including her
statesmen, are characterized by two
admirable qualities "a capacity for
logical thinking and a sense of thrift.
1t is not too much to expect that, in
voking these national traits, Premier
Laval and his associates will sooner or
later determine that the best interests
of France are to be found along that
path which the United States has just
laid cut.