Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-11
BY WILLIAM HARD.

Foreign affairs press upon Washing
ton at this week end in a most bewilder-
ing confusion. The President started
1t all with his statement Of last We'd
nesday morning to the effect that he
intended to discuss with Prime Minister
Laval Of France the question of such
further arrangements as are impera-
tive during the period of the depression
in respect of intergovernmental debts"
Since then almost everybody here seems
internationally engaged in talking about
debts, reparations, moratoriums, dis
armament, consultative pacts, security
pacts, approximations Of the Kellogg
BRAND peace pact and suggested solu-
lions even Of the problem Of the Polish
corridor"
1t is perhaps the first time that any
problem so strictly European as the
Polish corridor" has ever been the
subject Of official and unoficial con-
versationS in Washington. The Ameri-
can national village on the Potomac
talks today like the capital of the world.
1t talks also however, In such circles
and spirals and at such tangents that
the actual prospective foreign policies
of the country begin to wear the ap-
pearance Of a cubist puzzle. The en-
suing dispatch is an effort to find a
track through the puzzle to few plain
answers.
In Paris a fortnight ago this writer
was authoritatively informed that Prime
Minister Laval's primary purpose in
coming to the United States was to dis
cuss economic and financial co-opera-
ton between the United States and
France This information is substan-
tiated by the voyages now being made
to the United States in great haste by
Charles FARMER and Robert Lacour-
Gayet, high officers of the Bank of
France. They will be greeted with both
enthusiasm and trepidation in New
York City.
France has many hundreds Of millions
Of dollars of gold and other assets in
this country Federal Reserve Board
officials in Washington are concerned
when they think of possible sudden
assets from New York City to Paris.
They remember the large continuous
Withdrawals Of French gold from Lon
don to Paris in the period Immediately
preceding the British lapse from the
gold standard. They are extremely
eager to know what France intends to
do with her tagged gold here now.
~
Five years ago we forgave France a
large part of her debt to the United
States Treasury because she was then
so poor. Now we fear that an abrupt
transfer overseas by her of her vast
riches here might dislocate our interna-
tional business situation. We can thus
perceive that there will be a certain
irony in the conferences which will take
place between President Hoover and
Prime Minister Laval on THE question
Of such further arrangements as are
imperative during the period of the de-
preston IN respect OF intergovernmental
debts"
Prime Minister Laval cares little
about discussing those debts. 1t is
President Hoover who wants to discuss
them. Prime Minister Laval knows the
reason why President Hoover wants to
discuss them. That Is the very reason
why Prime Minister Laval is indisposed
to discuss them. The reason is German
reparations and American existing loans
and credits to Germany.
II X
The French say: I'VE have been too
wise to lend much money to Germany
The Americans have foolishly lent Ger
many a lot. The Americans want their
interest. We French want our repara-
tions. The Americans want to reduce
German reparations to us in order that
the Germans may be able better to pay
their interest to them. Good for them!
International public debt holidays are
very beneficial to New York City In
what respect, however, are they bene-
fetal to Paris? No! We must settle
the political differences between France
and Germany before international pub
lie debt holidays are useful to us. Let
us therefore talk with the Americans
and induce them to help us to persuade
Germany to be, as we look at it,
politically reasonable and peaceful
Then let France and the United States
together finance Germany back into
economic health"
y r II X
The reconciliation of this French
view with the American view is the
central task of the coming colloouies
between Prime Minister Laval and
President Hoover. Washington is in
terested in the instant relief of Ger
many. Paris is interested in the relief
of Germany after Germany has made
political agreements which will free
France from fear.
Prime Minister Laval has expressed
to our Government the idea, for in
stance. that the whole problem Of the
relations between France and Germany
could be solved If solution could be
found Of the problem Of the Polish
corridor" Hence there. have been con-
versations between American public men
and German public men regarding that
thin, short strip of territory between
Poland proper and the Baltic Sea.
These conversations have led to the
surmise that the United States might
intervene in the polish c0rridor'' flIes-
ton and would express an opinion as to
the corridor" should remain
Polish or revert to being German. Such
q surmise seems wholly unwarranted.