Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-05

The German Railway is O governments
concern, and the unconditional repara-
tons are paid through that institution
to the Bank Of International Settle
ments.
The two governments IN their agree.
ment recognize the principle OF the con-
tinuity Of payments under the Young
plan for German reparations, q prin-
ciple insisted upon by France. as .
sine qua non to its joining in the pro-
posed intergovernmental debt slspen-
sion plan for one year.
Banks TO Make Leans.
The two governments are In virtual
agreement over point raised by FRANCS
that some Of the Central European ma
lions shall be cared for in the debt sus-
pension plan. The French urged that
approximately SIS zoo. 900 Of the uncon-
ditional PREPARATIONS paid by Germany
ments this year should be loaned to
these Central European countries, in
GLIDING Poland, Rumania and Czecho-
sloYakia. To this the American Gov.
eminent objected on the ground that
such an arrangement would not give
Germany the complete suspension Of
debt payments which was contemplated
in the Presidents proposal.
1t has now been agreed, it is said,
SO far as possible between the two gov
ernments, that these Central European
countries are to be aided through loans
participated in by the Federal Reserve
Bank of New York, the Bank Of France
and the Bank Of England, II loans are
found to be necessary, with each OF
these banks loaning not more than
$4,000, 900. The Federal Reserve Bank
Taxrr rw~v211 d. %s.av 4<v.
consult the Federal Reserve Board, it
Is said.
Agree on 12-Year Payments.
The two governments have reached
an agreement, 1t is reported, on the
period for payments Of the suspended
debt payments. The French have
urged these payments be made in q
five-year period; the United States pro-
Is years. The agreement Is for pay
ments in a period of IL years, with no
payments to be made the first two
years.
AS to the French guarantee fund.-
point of difference, this Government has
said to France: This Government under
stands that France says this matter can
Is concerned, in view Of new interpre-
tation Of the guarantee fund, which
France will propose. This interpreta-
ton is that France shall be obligated
to pay into the Bank for International
Settlements only so much Of the $780,
100000 marks as and when such pay
n.ent becomes necessary. This inter-
probation Is said to be acceptable to
France. 1t is q matter, however, which
must be agreed to BY the signatories
OF the Young plan other than France.
The hope is expressed that such agree
ment will be forthcoming.
Memorandum Points Way.
High Government of1cials here said
last night that the United States, in
its memorandum, transmitted to Sec
handed to the French, had pointed q
way out Of any remaining difficulties
which have arisen in the minds Of the
French government to participation in
the Hoover dept suspension plan. This
way out Is the submission Of all tech.
nical points Of difference to q COM
mittee Of experts, either selected by the
Treasury officials Of the governments
involved, or q committee Of the Bank
for International Settlements.
The United States, It was said, would
look sympathetically on proposal that
this Government should send q repre-
sentative to SIT with such q commit
tee Of experts, although this Govern
ment's representative would be in the
capacity Of an observer and an advisor.
The great necessity, In the view Of
the American Government today, IS the
speedy termination of the negotiations
in regard to the debt suspension plan,
which have been running for two
weeks, so that the plan may become ef-
fective without further delay.
Expects to Work Out Details.
Once the plan has been accepted by
in principle, it was urged details could
be left to the proposed committee Of
experts to work out. and the actual
debt suspension plan could begin to
work without further delay.
1t was insisted that all these techni-
cal and involved questions-which must
be determined eventually not be
worked out.in conference between Sec
rotary Mellon and Premier Laval If
they should continue to talk until next
Christmas
Secretary Mellon was in communica-
ton by telephone with cfiicials Of this
Government last night following his
conference with the French Premier,
which did not end In Paris until about
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