Evening star., 1931-06-21
German Status
Seen as Cause
for Action
PARTY LEADERS
BACK PRESIDENT
Cancellation is Not
Considered Part
of Suggestion.
BY G. GOULD LINCOLN.


Postponement for one year OF
all payments on intergovern-
mental debts, reparations and re-
lief debts, both principal and in
terest, was proposed by President
Hoover last night.
THE purpose of this action"
said the President, "is to give the
forthcoming year to the economic
recovery of the world and to help
free the recuperative forces al
ready in motion in the United
States from retarding influences
abroad"
The American Government, under
the Presidents plan, will postpone all
payments upon the debts OF foreign
governments to the United States pay
able during the fiscal year beginning
July next, conditional on like post
ponement for one year Of all payments
On international debts owing the I'M
portant creditor powers.
Other Countries Involved.
There will be no postponement OF
pavments to the American Govern
ment, however, unless the foreign
powers involved agree to the plan now
advanced in full. This the President
made extremely clear. 81
In announcing his plan for relief OF
the world economic situation President
Hoover said that he had already OBJ
tanned the approval of the leading
Democratic and Republican members OF
tne Senate and the House.
Confident Of the prompt approval OF
the Congress when 1t meets in Decem-
Der, the President Is prepared to go
forward with the plan and with the
postponement Of payments on the for
eign debts owed this Government. Con-
greSsional action Is required for the
poStponement of the payment Of inter-
est on these debts, and the interest
payments at present are the larger
amount, with the principal payments
considerably less.
In round numbers, the plan of the
President looks TO a postponement OF
payments by foreign nations to the
United States during the next year OF
about SPAS, 100000 and postponement
of the payment of German reparationS
to the allied nations of approximately
S425, 900 ,0000 although this latter f1g-
ure has been estimated as high as
$500, 900 900, or 10000 000, 900 German
marks.
The plan contempIates also the post
ponement of payment on 1nter-all1eo
debts, for example, the debts owed Great
Britain.
The foreign governments involved
have already been informed OF the pro-
posed plan, 1t was said.
Strictly European Problem.
Despite the fact that the Presidents
plan for economic relief of the nations
looks to postponement of the payment
of German reparations as we'll as to the
postponement OF the payment OF the
suns due the United States by foreign
debtor nations during the coming year,
President Hoover insisted in his state
ment last night that German repara-
tions are wholly European problem
with which We have no relations"
He pointed out that the American
Government has not been a party to or
exerted any voice in the determina-
tion of reparation obligations, and that
1t did not participate in any repara-
tions or the division Of colonies or prop
erty.
"The repayment of debts due to us
from the allies for the advance for war
and reconstruction was settled upon a
basis not contingent upon German rep
arations or related thereto" he con-
tinued.
"I do not approve" said the Presi-
dent "in any remote sense of the can
collation. of the debts to u.s."
He said, however, that as the basis Of
the debt settlements made with the
debtor nations had been the capacity
to pay under normal conditions, I'VE
should be consistent with our own pol
icies and principles If We take into ac-
count the abnormal situation now ex-
isting in the world. I am sure the
American people have no desire to at