Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-07
FRENCH AND j. S.
AGREE IN Il DAYS
Accord Announced Here
Yesterday by Chief
Executive.
Continued From First Page)

'ONAASAAAAN0 AOAAA AN0O o6S't
government and Ambassador Edge and
Secretary Mellon in Paris.
1t constituted the acceptance by the
United States of q formula offered by
the French. 1t reconciled the view
the American position put forward in
the Presidents plan and the French
contemporaries.
In the negotiations for a settlement
many extraneous pointS-even some
considered by the United States outside
its province to settle-had arisen. These
were adjusted amicably to the satisfac-
ton of each.
Each side yielded points Details
which will make the agreement finally
effective will be worked out by experts.
Their work will be technical in char
acter, but they will be instructed to
keep their results within the spirit of
the Hoover proposal. In insisting on
this instruction to the experts, the
United States officials had in mind that
the experts decisions on method of
procedure should not place burdens on
Germany's treasury.
Other Questions Raised.
Meanwhile the State Department
turned its attention to points raised by
other countries in submitting their ap-
prevails in principle to the American
plan. Belgium raised the question of
its special position with regard to
reparations. Rumania raised the ques-
ton of its loans. Greece was concerned
about its reparaticns from Bulgaria.
These and many other questions must
be the subject of diplomatic discussions.
These discussions will not be as i'm
portant or delicate as those with the
Paris government.
Practically all Of the statements by
the United States since the negotia-
tons with Paris began. had been issued
by Acting Secretary Castle.
Castle and Mills prevailed upon the
Chief Executive to announce the accord
personally.
Greatly fatigued by the strain of the
day-andnight work for more than two
weeks on the plan, the President smiled
as scores of newspaper men filed into
his private Office at 4:30 o'clock yes
terday afternoon. He Immediately be-
gan reading a formal statement an
sll important creditor nations. with
the accord with France, had agreed
in principle to his proposal.
Announced by Laval.
Almost simultaneously on the other
nounced the United States had &C
cepted the French formula. The French
formula followed the lines put forward
by the United States in a memorandum
handed Premier Laval earlier yesterday
by Secretary Mellon.
1t provided that Germany shoulc
continue to pay the unconditional rep
arations under the Young plan. They
will be guaranteed by bonds of the Ger
man railways in the Bank for Interna-
tional Settlements. Interest on sus.
pended conditional reparations and the
railway bonds will be payable in 10 an
nual installments, beginning two years
hence.
Three points to which the United
States declined to be a party. on the
grounds they we're outside its province
were next listed as French "observa-
tons"
They provided that central banks
would assist with credits Central Euro
pean countries affected by the post
ponement This plan was put forward
after America objected to 100000
being set aside from unconditional pay
ments funds for reloaning to Germany
for the Central European countries.
France is to effect an arrangements
with the Bank for International Settle
ments fund in the event Germany de-
clares a moratorium The question OF
deliveries in kind, the last point to b.
cleared up. was settled to comply with
the American contention, that it be re-
ferred to the experts to be worked out in
accordance with the spirit of the Pres
ident's plan. France had formerly de-
sired the experts to have unlimitc
powers.
France also reserves the right to ask
Germany for indispensable assurances
that the suspended payments would be
used exclusively for economic purposes