Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-06
Mellon Memorandum Held So
important Entire Cabinet
Must Decide on Answer OF
Premier Laval.
AGREEMENT IS FORECAST
WITHIN NEXT 48 HOURS
Conferences With Treasury Head
and Edge to Be Resumed To-
night-America Ready to Put
Deliveries-in-Kind Question Up
to Experts.
BY the Associated Press.

BY the Associated Press.
PARIS, July 6.-Secretary An
drew w. Mellon today gave the
French negotiatorS new mem
orandum summing up the entire
American position regarding Pres
ident Hoover's moratorium pro-
posals.
The document was regarded as
SO important that Premier Laval
requested time to consult his en-
tire cabinet, promising to give Mr..
Mellon his answer later.
The contents of the memoran-
dunn were not disclosed pending
it's consideration by the cabinet,
although it was understood that
the State Department at Wash
ington originally had intended to
release it for publication there
this afternoon.
The belief was that compromise re-
garding deliveries in kind had been pro-
posed and that it was OF such nature
as to necessitate the approval OF both
governments.
Wants Full Support.
The suddenness with which the whole
French cabinet was called into meeting
on a bare half hours notice was in
terpreted as an indication that the
proposed solution was Of such 1mpor-
lance that Premier Laval wants to have
the backing of all his colleagues, rather
than of only the four who have been
taking part in the negotiations.
Nothing was disclosed at the Amer
lean embassy concerning the nature OF
the suggested compromise, for 1t Is
now in the hands of the French min
istry The feeling was general, how
ever, that the premier would not nave
called the cabinet together unless he
put before it.
On the whole indications were that
both the French and American nego-
tiators are optimistic.
Solution Is Expected.
Complete accord now seems to hinge
upon agreement concerning payment OF
reparations in kind by Germany and
both sides hope solution will be found
for this problem in conformity with
the spirit and scope of the Hoover
plan.
The Havas News Agency understands
that both sides have agreed to go on
record as accepting the Hoover plan
as it stands, with the reservation that
an accord be reached concerning the
methods of its application.
In circles close to the American
negotiators it was said there seems
TO be an agreement in substance but
not in form.
Havas understands also that Pre-
mier Laval will ask for a conference
of the powers which signed the Young
plan and are interested in the sus-
pension of Germans payments. 1t is
understood this decision will be made
public tonight after meeting OF the
French and American negotiatorS
scheduled for o'clock.
A cabinet minister who is not one
of the negotiators, told the Associated
Press today that definite accord was
in sight within 48 hours, perhaps to-
night"
Note Issued to Press.
Just before the conferees went into
their second session the French thesis
on deliveries in kind was expounded in
a Semi-off1cial note issued to the press
According to this document, the
French believe it would be better not to
interrupt deliveries in kind whose
utility for GermanyS national economy
is incontestible.'
1t would be necessary. therefore"
the statement said, Ito take from the
amount of the unconditional annuities
which Germany should pay the sums
necessary for payment of deliveries in
kind, and return to the Reich'S national
economy only the remainder.
Greater Sacrifice Seen.
The American negotiators. on the
other hand, suggest that France absorb
deliveries in kind and relend the amount
realized thereby to Germany.
1T can be seen that although 1t is
of secondary Importance, the point is
no less serious, since adoption of the
American viewpoint would considerably
augment the sacrifices to which France
already has consented.
However, it seems that even should
this disagreement continue it could not
be SO serious as to cause a breakdown
of the negotiations.
1T would no doubt suffice for an ac-
ceptable solution that both govern
ments agree to conf1de the problem of
PREPARATIONS in kind to a committee of
experts delegated by all the interested
nations"
The note summed up the situation to
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