Evening star., 1931-06-27
OFFICIALS EXPRESS
OPTIMISM IN DEBT
AGREEMENT OUTLOOK

Continued From First Page.)
loans In Latin America the Presidents
moratorium plan could not apply there
and the Federal Reserve Board has no
responsibility for the private loans.
In response to questions, Castle indi-
Gated the Federal Reserve Board was
an independent body, which could not
be influenced by the administration be-
yond suggestions. Decision as to
carried out rested entirely with the
board
Two Points stand Out.
One important point stood out In the
differences between the washington
and Paris viewpoints on the mora
torium proposal. This was President
Hoover'S stand that the debt sus-
pension include all intergovernmental
payments and the French insistence
that there be no innterruption In Ger
many's unconditional reparationS in
stallmentS.
Support Based on No Mobilization.
In addition, the United States ad-
miniStration had to take into consider
alton that pledges Of congressional sup
port made earlier in the week were
there would be no modification OF the
Presidents plan as originally an
nounced.
Secretary Mellon and Ambassador
E0ge bore the brunt OF negotiations in
Paris today, fortified by fresh inStruc-
tions from their President, while Secre-
tary StimSon was en- route for Europe
to engage In personal discussions with
the leading statesmen Of the Continent
The White House was ready to trans
init to Mr.. Hoover at his Rapidan fsh-
ing camp all developments as soon as
they materialized. The camp Is in an
wires from the Executive Mansion were
available to him with dispatches and
instructions.
Week Of Unusual Activity.
The President could look back upon
week OF unusual activity of internA-
tional importance. Last Saturday night
he announced his offer to suspend for
q year, beginning July j, payments on
war debts TO the United States, pro-
vided other countries would declare q
mora torium for o like period on all in
tergovernmental obligations.
Most of the powers involved have ac-
cepted the idea. The future Of the
entire plan rests principally upon recon-
Citation of the French and American
attitudes.
Suggestions in. diplomatic circles. fore
cast concessions by both nations. Some
held that the United States will accede
to the French counter proposal for con-
tinuation of Germany'S unconditional
reparationS payments to the Bank for
International Settlements They con-
| tend, though, that the American nego-
tiators will insist that no interest be
charged on the resulting credits and
that they be available only to Germany.
StInsOn 70 Join Mellon.
Hope was expressed that by the time
| Secretary Stimson reaches Paris, after
comforting with Italian officials, the
major barriers to contamination Of the
plan will have been overcome. The Sec
retsry of State, however, Is prepared to
join Secretary Mellon and Ambassador
Edge In preliminary talks.
Meanwhile the administration con-
| tinued hopeful that no barrier will de-
velop to congressional approval Of nee
eSSary legislation. Some ofilcialS were
especially pleased at the approval in
Atlanta last night by Chairman Jouett
| Shouse of the Democratic National
| Executive Committee. Republicans did
not seem especially concerned about his
remark that it might lead to IAN en-
| tirely new set Of issues" for the next
presidential election.