Evening star., 1931-06-27
DEBT PLAN BRINGS
POLITICS TO FRONT
France and Italy Seen as
Likely to Make Certain
Demands on Germany.
BY CONSTANTINE BROWN.

Direct conversations rBgarding the
Hoover proposal between the French
and the German governments, with the
full knowledge and approval Of the
American Government. have started
and are said to be progressing salts
factorily. Their scope Is to facilitate q
solution whereby the French and Ger
man points OF view can be reconciled
and brought into harmony with the
basic principles OF the Presidents plan.
These Conversations are reliably re-
ported to have been started at the Sug-
gestion OF the Secretary of the Treasury.
Andrew w. Mellon. When 1t became
evident that the French government.
regardless OF Its desire TO cooperate
with the President, could not agree 20
his suggestion of asking the French
Parliament to vote for a complete sus-
pension of all debts and reparations, 1t
seemed as II the whole plan would be
deadlocked.
Political Angle Seen.
The idea is that the best thing for
the two countries would be to iron out
their dificultieS, and II their eventual
agreement fits in with the Presidents S
views and does not place the whole
burden of the settlement OH the United
States, 1t Is likely that It will be ac-
cepted by this country.
| 1t appears, however. that 1t will be
dif1lcult to bring the French and the
German statesmen face to face without
the French asking to discuss certain po-
litical aspects of the European problem.
and 1t Is again probable that the Ger
mans will be asked to make certain po-
litical concessions before the French
agree to any reparations sacrifices.
This Is fully understood here and
does not enter into the picture the
President has in mind. Should the
French bring up these matters the en-
tire problem will become complicated
and certain foreign representatives have
discreetly asked for explanations from
the State Department.
Italy May Prove Problem,
| Especially difficult is the case of Italy.
! II will be remembered that Italy IN
tended before giving a final answer to
| the Presidents proposal, to ask Ger
many to abandon its proposed customs
union with Australia. When Premier
MuSsolini was informed that such q re-
quest would cause painful impression
here because the President had eX-
plicitly expressed his aversion TO in
lection OF any political matter. SignOr
MuSsolIni conceded his unqualified ap-
pfoval Now, II the French are per-
mltted TO bring political matters into
their conversations with Germany, Italy
| would feel that she was being asked
! TO make substantial financial sacrifices
without getting the same political ad-
vantageS as France.
In spite of these complications, there
is still an optimistic feeling III Wash
| inigton. 1t Is believed In State Depart
ment and diplomatic circles that. al
though the negotiations will be more
| protracted than 1t was thought at first.
the European nations will get tog ether
and reach a compromise which would
satisfy them and American public opiIr-
! ion.
In certain quarters Secretary Of State
Henry L. StimSonS sudden departure
TO Europe at time when his presence
| here Is deemed essential Is interpreted
as an indication that the Presidents S
proposal Is either doomed to failure
or may have much more important
consequences than 1t was originally
considered.
A section of diplomatic opinion be-
lieyes that, since q Franco German po-
litical agreement seems to be neces-
! sary before the economic settlement, it