Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-09
HOOVER DEBT TALK
MET FAvORABLY
Europe Holds Arms Reduc-
ton and War Burdens
Have No Connection.
BY PAUL SCOTT MOwRER.

from members of the International
Chamber of Commerce ending its con-
gress In Washington today that the
United States might make q further
reduction of war debts If Europe would
consent to disarm have not met with q
favorable reception on this side OF the
Atlantic.
The American argument that the
United States cannot consent that the
| money it RENTS shall be used for arma-
ments falls fiat here Even countries
which favor both reduction OF war
debts and drastic disarmament fail to
see any direct relation between the two.
Germans Would Profit Most.
In the first place. Europe IL not n
unit The different countries compos-
| ing it have different interests. Great
Britain has the strongest navy and
France the strongest army, but under
the present reparations covenant, known
as the Young plan, it is not France or
Great Britain, but Germany Wnlcn
would profit most from reduction OF
war debts. and Germany Is supposed 10
be already disarmed.
France Is receiving from the repara :
states but also something extra toward
reimbursement Of the huge sums 1t was
Obliged to devote to reconstruction IN
the area devastated in the World war.
Since the funding OF the war debts
and the institution of the Young plan,
Great Britain has almost ceased COM
! planning about the war debts ano
France has entirely ceased II B Ger
many which Is dissatisfied.
L. kIao re q r.
den. even under the Young plan, and
has started a campaign TO obtain some
sort of q moratorium. In this case, the
French government would have no re-
course under the reservation wherew1th
the French legislature ratifed the
Young plan, save to declare mora
forum on its war debts.
All Would Cease Payments.
Great Britain, then, would be likely
to declare a war debt moratorium.
Germany would cease paying France,
Great Britain, Italy and Belgium, but
these countries, in turn, would pre-
sumably all cease paying the United
States.
The two years during which the
mora torium might legally run would
be utilized, it Is considered, to nego-
tiate a new settlement all around on
terms which cannot as yet be foreseen.
On the other hand, France, Great
Britain, Italy and Belgium, have agreed
that any further concessions the United
States makes on war debts shall be
applied mainly to proportinate reduction
OF German reparations.
Why, therefore, it Is asked, should
Great Britain reduce its navy and
France It's army at the behest OF the
United States in order to benefit Ger
! many?
Fear Causes Armaments.
Even II France and Great Britain
themselves were to be the main bene-
ficiaries of the suggested war debt cut,
IL is widely doubted whether they would
be willing to be bought by the United
States into a weakening Of their ma
tional defense against the dictates OF
their own judgment.
Experience during the last few years
seems to indicate that the main cause
Of armament is fear and that expense,
| while important, is secondary con-
sideration. The examples OF Germany,
Italy, Poland and even Great Britain
itself seem to indicate that the nations.
which fear for their national safety of
even for their position in the world,
will always find money somehow to
keep their ornaments at the level they
consider appropriate.
Reduction of war debts would scarcely
change this situation. it is pointed out.
! Under the theory of parity the size OF
our own Navy depends upon the size
of the British navy. But the size OF
the British navy, under the two-power
standard theory, depends upon the size
OF the French and Italian navies.
Between France and Italy there Is
naval race, Italy striving for parity with
France and France striving TO maintain
about a 80 ratio TO Italy. How, 1t Is
| asked, could a reduction Of war debts
| settle the Franco Italian problem or
Great Britains relation thereto?
Army Size Based on Strategy.
Again, the size of Enrope's largest
army. namely, the French. which sets
| the pace for all others, appears to be
calculated less on the amount OF money
theoretically available for armament
problems which the French government
considers vitality important. These
strategical problems. it is suggested,
have absolutely nothing to do with the
| increase or decrease of war debts.
Virtually the whole of Europe believes
| that war debts and reparattons should
be reduced. but European reparations
creditors are unwilling to cut repara-
! tons again unless the American creditor
/ cuts the war debts again.
European opinion believes that the
| initiative must come from Germany on
the one hand and the United States
on the other. 1t holds that reductions
all around would he to everybody's IN
terest on the theory that the money
thus released from government chan
| nels would go toward quickening inter-
ma Lional trade and hence help the re-
turn to prosperity. But 1t also believes
that this quickening of trade would help
the United States as much as ANYBODY.
Arms Cut Terms Given.
Europe fails to see, In other words,
why it should pay the United States to
do something which it considers Is to
the interest of the United States any
way.
Both Great Britain and France have
reiterated, however, the terms on which
/ they would reduce ornaments and these
terms have no relation to money. Great
Britain will cut its navy II France and
Italy cut theirs. Italy will cut to any
figure France likes II France grants
parity. But France will cut only If italy
| foregoes parity or II Great Britain and
italy enter a cooperative peace agree
ment with France.
Similarly, France has repeatedly
| stated that 1t will cut its army in re-
| turn for a cooperative peace agree
ment. France in particular, and Europe
in general, as represented in the League
of Nations, does want something from
the United States In return for which
1t appears to be willing TO reduce anna
ments, but this something Is not debt
reduction--it is a peace pledge.
What Europe wants is declaration
from us that in case of war we will re-
fuse to support the aggressor In any
way wha tSoever. Such declaration, 1t
is asserted. would enable Great Britain
tn keep It's commitments under the