The Bismarck tribune., 1931-07-06
TEXT Of STATEMENT
TO Be TELEPH0NED
TO UNITED STATES
Castle Assures World That
Points Still in Dispute Do
Not Threaten Success
U. S. Government HOPEFUL
Optimistic Statement Issue d
After Long Conference With
President Hoover

Paris, July 6-(P)-An official
conamunique issued Monday evening
said the French cabinet had approved
the text of basis of accord between
France and the United States.
The text was to be telephoned to
the United States by Secretary Mel
lon, the communique said.
The French statement was in an
swer to q proposal, announced at
Washington, whereby the United
States suggested that the two nations
simply announce their agreement in
principle and leave the details to ex-
pertS.
At the same time Acting Secretary
Castle of the state department gave
to the world reinsurance that the
points remaining in dispute were not
regarded here as seriously threaten
ing final success.
The United States has no doubt.
Castle said in statement. that the
moratorium will become effective.
President Hoover, who interrupted
his weekend at the Rapidan camp to
hurry back to Washington Sunday
and resume his conferences with Cas-
tie and others on the moratorium pro-
posal, has felt that delay and uncer-
tainty would seriously detract from
the effect of the plan on the world
economic situation.
It is the hope of officials here that
these uncertainties may be taken out
of the picture quickly by the method
now proposed.
Officials Confer
Castle conferred for an hour with
President Hoover after issuing his
statement. At the end Of their con-
ference, he said, there was no change
In the situation and that the Ameri-
can government was standing firmly
on its position.
He added that he, Acting Secretary
Mills of the treasury and the presi-
dent had been in telephone communl-
cation with Secretary Mellon in Paris.
On instructions a President Hoover,
Secretary Mellon presented to the
French government a new and slmpn-
fled formula which President Hoover
believes will meet the entire situation
It provides that France and the
United States agree in principle on
the remaining points OF difference and
that all technical questions and the
divergence between the two on pay
ments of reparations in kind land
every other question" be referred tc
technical experts.
Paris advices said Premier Lava
had called the entire cabinet into
session to consider the American plar
following q two-hour conference with
Secretary Mellon and Ambassador
J. Edge.
I'VE have no misgivings that the
presidents plan will not become e1-
fectiye." the statement said. THE
French government did not accep'
our note of July 4, which was pub
lished July s. as the basis for an ar
rangement.
New Questions Raised
"They have raised several new ques.
tions which have not been hltherU
discussed, many of which involve re-
lations between the signatories to tnt
Young plan to which we are not
party. and which, of course. we can
not pretend to be able to negotla1e.
French Issue Note
Just before the conferees went INT
session at Paris, the French tnesi
on deliveries in kind was expoundet
in semi-official note issued to tn
ACC According to this document, tn
French believe it would be better no
"a interrupt deliveries in kind who's
,,+;iitv for Germany's national econ
omy is incontestible."
1T would. be necessary. therefore,
the statement said, Ito take from tn
amount Of the unconditional annui
ties which Germany should pay tn
sums necessary for payment OF de
liveries In kind, and return to Tn
Reich's national economy only the re
mainder. -,
"The American negotiators, on tn
other hand, suggest France absor
deliveries in kind and relend tn
amount realized thereby to German!
"It ;an be seen that although 1t
az secondary importance the point
no less serious, since adoption OF tn
American viewpoint would CONSIDER
ably augment the sacrifices to wnlc
France already has consented.
However, it seems that even snoui
this disagreement continue 1t coul
not be SO serious as to cause break
down Of the negotiations.
1T would no doubt suffice for 2
acceptable solution that both govern
ments agree to confide the proDlei
OF reparations In kind to commis
tee Of experts delegated by all the N
terested nations"
In Partial Agreement
20 far the two governments nav
agreed on the following compromises
/. To let Germany refund IN
years credit from continued paymen
of unconditional reparations to u
hank Of international settlements.
2. Extend these credits to the der
man railway, which bears the heav
iest load Of reparations. instead
to Rumania, Jugoslavia and Csechc
slcvskia as we'll Central banks
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