The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-06-30
FRANCE BARS
Way TO DEBT
PLAN SUCCESS
Paris Government Blocks
Pact by Refusal to
Make Concession.
MORROW CALLED IN
Houghton Also viii Confer
With Hoover, in Hope
of Solution.
BY JOSEPH H. BAIRD
united Press STAFF Corresnondent


WASHINGTON, June 30.-On the
eve Of the day by which President
Hoover had hoped his debt suspen-
sion program would be accepted
universally-July 1--all interested
nations have agreed to 1t lin prin-
ciple" except France.
Despite pessimistic reports from
Paris, American officials remained
hopeful today that France would
enter the pact soon.
Frances isolation was emphasized
in one Of the most pointed admins
tration statements issued since the
debt negotiations began. After re-
ceiving telephone reports at the
White House from Secretary Mellon,
in Paris, acting Secretary of State
Castle said:
ut is our understanding that all
governments have agreed in prin-
ciple to the Presidents plan except
the French government. Some Diff
ficulties have arisen in reconciling
the French position with the spirit
of the Presidents proposal. Dis
cussions are continuing between
Ambassador Edge and Secretary
Mellon and the French ministry"
Morrow Is Summoned
Meanwhile. Mr.. Hoover summoned
two more advisors, one particularly
well-informed on international n
nance, the other personally con-
versant with conditions in Germany.
They are Senator Dwight W. Nor
row of New Jersey, f1nancier and
diplomat. and Alanson B. Hough-
ton, former ambassador to Germany
and Great Britain.
AS a partner in the international
banking house of j. P. Morgan,
Morrow learned the intricacies OF
intergovernmental finance as few
men know it. Later, as ambassador
to Mexico, under Presidents Cool
idge and Hoover, he solved the dell
cate international tangle resulting
from Mexico's oil laws, which part
of American big business considered
conflscatory.
Still later he was a member OF
the American delegation to the
London naval conference, and was
considered one of the leading spirits
Of the conference.
Houghton, too, knows the finer
points of diplomacy, but he probably
will be most valuable to Mr.. Hoover
as an authority on conditions in
Germany, where he lived for some
time.
Two SnagS in Way
Until Monday night some officials
had hoped that an agreement lin
principle" with France could be
announced. These hopes were
shattered after Mellon, who had
conferred with Premier Laval fol-
lowing a French cabinet meeting,
reported by long distance telephone
to the White House.
Mellon reported that the French
had not agreed to the plan in suftl-
cient detail to warrant announce
ment of an agreement. He said
also that further negotiations would
have to be delayed until Wednes-
day morning. The French govern
ment must go before the senate
today to answer questions regard
ing the debt program.
Two technical details, it is I'M
derstood are barring full under
standing with France. First is the
French contention that some of the
money paid into the bank for in
ternational settlements by Germany
must be loaned to southeastern
European countries.
The second disputed point, 1t is
understood. concerns the term Of
years in which Germany may comp
ensate France for the reparations
she will forego this year.