Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-30
CAPITAL IS SILENT
ON FRENCH TERMS
U. S. Takes Position Debt
Offer Could Have Been
Agreed To or Rejected.
BY G. GOULD LINCOLN.

The American Government had be-
fore it today for consideration the
terms of the French regarding inter-
governmental debt suspensions as they
were handed Secretary Mellon and AM
bassador Edge last night in Paris by
Premier Laval of France.
What answer to these terms the ad-
ministration has made or will make
was not revealed today, either at the
White House or at the State Depart
ment.
Indeed, the silence of the American
Government today was even greater
than 1t has been on any day since the
Presidents proposal was put forward
The finality Of the statement made in
Paris by Premier Laval as reported in
the press dispatches when he stated
that these terms had been handed to
Mr.. Mellon for transmission to Wash
ington did not give great hope of further
concessions. On the other hand. there
are matters in the French answer
handed Mr.. Mellon which do not ac-
COIO, IL Is SdlO, WIFI Tie principles Oh
the original offer made by President
Hoover.
Legislators Approved Plan.
The American Government has taken
the position that the offer Of debt post
| ponement was a simple affair, to which
agreement could be made or not made.
Furthermore 1t was proposal to which
! the consent of Democratic members of
! the Senate and House, Republican and
Progressive members Of those bodies
gave their assent before the President
announced 1t. Whether these members
Of the Congress which In the end must
put through ratifying legislation would
look with favor upon the agreement
as modified by the French no one would
hazard a guess.
Although negotiations were at a
standstill In Paris today because of the
fact that the French Senate was in
session and members Of the Cabinet
we're tied up with that body, confer
ences were continued here, with Act
ing Secretary of State Castle and Act
ing Secretary Of the Treasury Mills
discussing further the situation with
the President. Both were at the White
House this morning, put both declined
to comment on the situation so far as
the debt suspension plan was concerned.
France Appears Isolated.
With all the governments involved
agreeing in principle to the proposal
of the President for debt suspension,
as announced by the Acting Secretary
of State, France appeared today to be
in an isolated position. Whether the
French terms as submitted by Premier
Laval can be brought into conformity
with the principle" Of the Hoover
proposal is the question, and admittedly
a grave question today. II France
should upset the applicant by strict
declination to come within the plan,
the situation would be diflcult to say
the least, with the hopes Of the world
cast down after having been raised by
the Hoover proposal.
Doubtless, it Is felt here, the French
will weigh carefully the consequences
Of breakdown in the negotiations and
the failure of the Presidents plan to
go through.
The hope was expressed that some
concessions could be made which would
relieve the situation and bring sue
cessful conclusion to the present ne
gotiations If France finally determined
to remain outside of the debt-suspen-
sion agreement. the question arises,
could or would the remainder Of the
nations involved carry on with the
plan?
Under such circumstances, France
would continue to receive from Ger
many reparations payable this year, but
at the same time would continue to
pay to the United States and Great
Britain on her own debts. The balance
would be in favor of France, even though
Germany should declare moratorium
on the conditional payments she makes
to France. For example, France Is due
to receive $109, 900, 900 in unconditional
reparations from Germany during. the