Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-28
MELLON AND LAVAL
SPLIT ON RELOAN|NG
GERMAN PAYMENTS
Premier Reported to Desire
Sum Be Made Available
to Central Countries.
SECRETARY HOLDS REICH
NEEDS ENTIRE AMOUNT
Bruening and Curtius Are Invited
to Paris to Discuss Stu.
alton.

PARIS. June 27.-Andrew W. Mel
Ion. American Secretary Of the Treas
ury, and Premier Laval spent two and
one-half hours comforting this after
noon III an effort to iron out the issues
raised by President Hoover's war debt
moratorium proposal and the French
governments reply.
The first tangible result of the
Mellon-Laval Conference was an invi-
tation, issued as soon as the meeting
was over, to Chancellor Bruening and
Foreign Minister Curtius of Germany
to come to Paris. The invitation
came from the French premier
The conversations between the rep
reSentatives of the United States and
the French government will be resumed
soon, probably on Monday.
Today's conference took place at the
Ministry of the Interior, M. Laval's
residence, on a perfect June afternoon.
At the conference table in addition to
Mr.. Mellon and the French premier
were United States Ambassador Walter
E. Edge, Foreign Minister BRAND,
Finance Minister F1andin, Budget
Minister Pietri, Andre Francois-Poncet,
undersecretary for finance and economy
and J. Theodore Mariner, counselor
Of the American embassy.
French Reply Discussed.
From the beginning there was an
apparent determination on all sides to
arrive at positive result.
The French reply to Mr.. Hoover's
suggestion was made the basis of the
discussion. Otherwise, it was made
clear Mr. Mellon would not have con-
sensed to the meeting which was the
opening of negotiations to get the maxi
mum value out of the Hoover proposal
and the French partial acceptance.
The portion Of the French reply be-
lieved to have come in for the major
part of the discussion bears on the use
Of unconditional reparations which Ger
many, under the plan suggested in the
French answer, would pay into the Bank
for International Settlements.
Mr.. Mellon was reported to have
taken the position that all such money
would be needed by Germany, while
M Laval desired that it be made avail
able also for other central European
countries in difficulties, notably Austria.
Seek TO Preserve Young Plan.
The negotiations also turned on more
general considerations. The French de-
sire to have some sort of guarantee
that the Hoover proposal would not
prove fatal to the Young plan was
repeatedly expressed.
This point, it was believed, led to a
discussion as to whether it would not
be desirable to bring the German gov
eminent directly into the negotiations
Premier Laval was reported to have
taken the position that it was tmpos-
s1ble for him to conclude finally on
plan for the relief of Germany without
first arriving at an understanding with
Herr Bruening and DR.. Curtius.
The delicate point then at issue was
whether Mr.. Mellon would participate
in the discussions with the Germans.
1t was recognized that such participa-
ton would be contrary to the American
refusal to enter into reparations discus
Sions and so it was arranged that the
Franco-German negotiations would be
kept apart from the conversations be-
tween MI. Mellon and the French
statesmen in the event the Germans
came to Paris before the departure of
the American Secretary of the
Treasury.
Seek Early Conclusion.
It wa hoped the Germans would ar
rive Monday, thus making 1t possible to
conclude the negotiations by Tuesday.
When Mr. Hoover made his moratorium
proposal he suggested that it become
effective July /, which is Wednesday.
The negotiations will not be entirely
at standstill over the week end since
M Flandin will have Mr.. Mellon and
Mr.. Edge to luncheon at his home to-
morrow. This meeting will not be OFF,
cial No other members Of the French
government are expected to be present.
M Flandin, who speaks English per-
fectly, will be able to go over the en-
tire ground with Mr. Mellon and to
Continued on Page 4, Column g.