Evening star., 1931-06-27
The French RenlY.

The French Reply.
From the Potomac to the Seine has
now been transferred the next phase
Of the Hoover plan for suspension of
war debt payments. France yesterday
made her formal reply to the Presi-
dents proposal. Early this morning
the Paris governments position, as
therein set forth, was sustained in the
French Chamber by majority that
leaves no doubt of Parliament's sup
port of the Laval cabinets attitude. In
Paris, as in Washington. the assent of
the national legislature is requisite be-
fore the administration can enter into
International agreements involving the
peoples money.
On the face of things, France. in
Secretary Stimsons words, shows a
gratifying cordiality to the Presidents S
proposal" But her reply also contains
suggestions which do not accomplish
the full measure of relief to debtor ma
tions corresponding to the Presidents
plan" These suggestions, Col. Slim
son points out, must therefore be the
subject of further discussion, with a
view to modification that will bring the
full measure Of accord" Note we'll the
words must" and modification" In
them lies the kernel Of the American
reaction to Frances attitude It must"
be thoroughly reconsidered and sub
jected to modification" If there is to
be applied to the problem Of economic
recovery the remedy which the Presi-
dent of the United States has pre-
scribed. There is no actual hint of an
ultimatum in Secretary Stimsor's state
ment. But it is capable Of such a con-
struction.
Happily, negotiations designed to
harmonize the French viewpoint with
that Of President Hoover have Instant
ly set in. Secretary Mellon arrived In
Paris simultaneous with the French
reply. He is already in contact with
Premier Laval and Foreign Minister
BRAND. Faith in the ultimate achieve
ment Of an understanding is justified
alike by Mr.. Melons skill in such an
emergency and by Frances expressed
eagerneSs to fall in line with Mr.. Hoo
ver's program in so far as it Is COM
patible with French interests.
Frances position is that Germany
should not be permitted to cease pay
ing the ''non-postponable" reparation
annuities due from her, amounting to
some forty EIGHT per cent Of the $425,-
100000 for which she is Immediately
obligated. The French hold 1t would be
jeopardizing the "intangibility" of the
Young plan if Germany even during the
projected year of grace, we're to stop
paying both the conditional and un-
conditional annuities. Paris therefore
proposes that France shall place at the
disposal of the Bank of International
Settlements a sum equal to her share
, OF the -postponable annuity for one
year. All the sums thus turned over
for the French suggest that Germany's
other creditors shall likewise utilize
the non-poStponable amounts Berlin
pays them-"coGld be utilized at once
for improving credit in Germany, as
well as in countries of Central Europe,
and especially those in which the sus-
pension of the execution of the Young
plan during one year might create
financial or economic disturbance"
In other words, France says: LET
Germany pay everybody everything she
Internationally owes during the next
year. We will then pay it into the In
ternational Bank, where it will be avail
able to help cure economic distress not
only in Germany, but in other European
countries that are just as badly off as
she Is" The French argue that 1t is
a European economic crisis and not
purely German distress that clamors for.
the amehoration President Hoover
projects. France has alliances, or
serni-alliances, with Poland, Rumania,
Jugoslavia and Czechoslovakia. Hence,
transparently, her zeal to see that re-
lief is spread over all of Central
Europe" and not confined to Germany.
The French thus seek to give the
American plan a vitally different aspect
from the one which electrified the world
when disclosed at Washington week
ago. Undoubtedly, diplomatic dilemma
is now presented. There will have to
be giving way somewhere. The Aneri-
can proposal and the. French counter
proposition are irreconcilable in i'm
portant respect That does not mean
that they are hopelessly Incompatible.
Craftsmanship has fresh nut to crack.
With good will on all sides springing
from the realization that the hour and
the crisis call for definitive action,
France and America should fnd the
way.
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