The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1931-10-26
AND LAVAL
HOPE TO LlGHTEN
ECONOMIC BURDEl'
Program Agreed on BY Leaders
Faced With Test of Max.
ing It Work
EXPECT GERMANY TO ACT
Crisis Will Be Reached When
Teutons Ask For Repara-
tons Relief

Washington, Oct. 26.-R-A new
deal to tighten the worlds enormous
budget Of war debts and reparations
became the next goal Of international
craftsmanship Monday as Premier
Laval of France sped homeward att
his conference with President Hoo-
yer.
A specific program of reduction was
discussed by the two leaders and now
will be put to the test Of practical
application.
The initiative Is to be left to Ger
many. who IS expected to ask soon for
relief from her reparationS. France
Is expected to agree provided the war
debts are readjusted. The United
States Is ready to consider proposals
Tor such q readjustment.
Neither Hoover MOI Laval was In a
position to commit his government
definitely. Any curtailment Of war
debts owed to the United States must
eventually have the approval Of con-
gress. where the opposition Is already
preparing to give battle. Both presi-
dent and premier, however, rely ap-
parently on the force OF ctrcum-
stances and the appeal Of economic
retirement to carry the point.
only vague possibilities appeared
that the war-debt cut would be &C.
companied by that reduction Of arm
aments so much desired by President
Hoover. From first to last Premier
Laval stood firm that France must
remain armed until she has q better
guarantee Of secuity. That the Unit
ed States would give any such guar
antee, however, was 80 far out Of the
question the premier did not even
suggest 1t.
Pledge Financial AID
The more tangible immediate 70.
suits OF the negotiations embraced :
pledge Of mutual aid to preserve the
French and American monetary sys-
TENS Of the gold standard: to cooper
ate In the sterilization Of iuteruation-
al exchange: and to work uuitedly
for the liberation ont only Of frozen
securities, but Of what Hoover calls
frozen confidence" No more French
attacks on the value Of the American
dollar are expected. French gold
Withdrawals from New York already
are being halted.
A long official statement Issued
Sunday night from tho white house.
set forth In general terms the scopa
and accomplishments Of the Friday
to-Sunday conferences. It was spon-
sored jointly Ivy President Hoover and
Premier Laval, ard most Of Sunday
was occupied In casting English and
French official texts into thoroughly
harmless diplomatic phrase.
The statement was almost COM
pletely denuded Of deals. It declared
real progress" had been made. It
expressed a joint hope that the Feb
ruary arms conference would "tako
advantage Of the great opportunity"
and that the way had been paved to
helpful action"
Behind these general expressions OF
accord, however, lay the untold story
of an interesting three days.
Almost as o as they came to-
gether last Friday, the president and
Premier Laval agreed the way to start
talking economic recovery was by
talking about relieving Germany.
The Hoover debt holiday, under
which the German ~reparations pay
ments are suspended for . year, ex-
pires next June. It now Is realized
Germany will be little better able to
pay next June than she was last June.
Like Young Plan
The French set great store by the
Young plan adopted In 1929 for the
regulation Of these reparations. It
has been held up as q French bulwark
Of uncommon Importance. Laval In
sisted that II any change were made
in the German r~eparations situation.
it must be through the machinery al
ready established under this plan.
In the Young plan is . provision
that whenever Germany finds the
burden too great TO bear, she may
give ninety days notice and suspend
payments temporarily. Automattcal-
ly, q non-governmental committee OF
seven, including m American named
by the federal reserve system, would
be set up to reassess Germany's abil-
ity to pay.
This provision Germany Is expected
soon to invoke, and with the scaling
down in German payments to the
allies will come a reopening OF the
whole question Of their debts to this
country. Presumably President Hoo
yer will ask congress to authors-e
American experts to reassess the (!
ity Of these debtors to meet their bills
under the changed conditions.
Laval left Washington early Mon
day for New York, where he Will m
bark for France.
Borah Starts Tempest
In the wake Of the conferences OF
President Hoover and Premier Laval,
Washington guaged the reaction to
the explosive interlude of Senator
Borah.
The Idaho Republicans blunt dec
laration to French newspaperrnen
that the world needed revision Of the
Versailles treaty Of pesce with Ger
many left a gap between him and
the French premier that two meettngs
failed to bridge.
). In bidding goodbye to Senator
Borah Sunday night at the French
; reception, Premier Laval left no IN.
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