Evening star., 1931-12-25
CONGRESS TO BALK
FURTHER DEBT CUT,
WATSON ASSERTS
G. 0. P. Leader in Senate
Voices Belief European Ma
tions Can and Will Pay.
DECLARES GREAT BRITAIN
is IN SEVEREST STRAITS
Says U. S. Made Mistake by Per-
mitting Powers to Mix War obi
cations and Reparations.
BY G. GOULD LINCOLN.

The unanimity with which Congress
sional leaders, Democratic and Repub-
lcan alike, have opposed any further
reduction or cancellation of the debts
owed this country by foreign nations
was summed up today by Senator James
E. Watson, Republican leader Of the
Senate, when he said:
I'm the present frame Of mind Of
the Congress, there is not the slightest
probability that the United States will
agree to any further reduction or can
collation. of the World War debts owed
this country by European nations.
There would have to be a complete
metamorphosis in the opinion of the
national Legislature
The sentiment of the Congress and
among the many members with whom
I have talked regarding the debt sit
uation, is that if Europe does not want
to pay her debts to the United States
then she will have to repudiate these
debts and quit"
Thinks Nations Will Pay.
Senator Watson added, however, that
in his Judgment the European nations
will pay and can pay. OF the three
principal debtors Of the United States,
he said that Great Britain was in the
severeSt straits today. He added, how
ever, that he believed Great Britain
would eventually pay its debts to the
United States.
There is no question whatever that
France could pay the United States"
said Senator Watson. France spent on
her navy last year, building it up to
greater strength, enough money to
make her debt payments to this coun-
try. Italy too, is able to pay.
The great wrong was done when
we permitted these foreign nations to
mix the war debts due us with German
reparatlons. The reparations were i'm
posed upon Germany as reprisal and
to exact from Germany expenditures
to which the allied nations we're put
during the war. 1t appears they have
imposed burdens on Germany that she
cannot pay. These foreign nations
have insisted they would pay us their
deotS as Germany paid them repara-
uons, AS matter of fact, the Ger
man reparations have nothing to do
with the debts owed this country.
The United States will consent to
no reduction of debts unless these
German reparations are cut way down
or abandoned, and a pledge is given
ny the European nations to reduce
thelr armament expenditures.
II Is unthlnkable that our people are
going to pay to build up European ma
Vles and armies "
Doubts Hoover Will Act.
Senator Watson said that, while he
q Will
about the debt and reparation situation
In Europe, he did not believe the Presi-
dent would make any move whatever
toward revision or cancellation of the
debts, particularly in view CT the atti-
tude which has been expressed by Con-
gress in adopting the moratorium reso-
luton. In that resolution Congress
placed declaration against any reduc-
ton or cancellation of the debts owed
this country
While the President undoubtedly, as
Chief Executive, has authority to nego-
tiate with the European nations regard
ing the debts, it is expected on Capitol
Hill that he will be guided by the very
definite declaration made by the Con-
gress, the elected representatives of the
people, particularly in view of the fact
no change can be made in the debt
settlements without the authority of
Congress.
The United States may be represented
at the conference which it is proposed
to hold soon in Europe to consider the
report of the experts just made on the
reparations situation, but proposals for
revisionS, 1t is expected, will have to
originate in the European nations.
Senator Borah of Idaho is convinced
the American people cannot go on pour
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