Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-11
GERMANY REFUSES
PARIS LOAN TERMS
Won Hindenburg and Bruening
Ready to Resign Rather
Than Grant Concessions.
Continued From First Page)

Continued From First Page)
will not be imperiled and that peace
full cooperation with France within
the framework OF Brands United
States of Europe will dominate Ger
many's foreign policy.
Must Restore Confidence.
Herr Luther is understood to have
been informed in his conversations
with Premier Laval, Finance Minister
Flandin and Governor Moret Of the
Bank of France that French assist
ance depends on the action of the
German government In taking financial
and political steps to restore confidence
in the stability Of her condition both at
home and abroad.
He is said to have requested credit
advances amounting to $685. 900 900, TO
be repaid In monthly insta1lments; a
renewal Of the $1O0, O00, 900 30-day loan
granted by the banks OF issue OF the
United States, England and France and
the World Bank. falling due next
Thursday. extension Of that loan by
500 ,000, 900 and one to two year
loan OF $4,000 900 900 for the Gold Dis
count Bank of Germany.
The Government was said unofhcially
to favor granting the Rceihbank sub
stantial short-term loan in cooperation
and agreement with British and Amer
lean banks. Germanys finances could
then be taken before a committee Of
experts Of the European Economic
Union IL was said. and conclusions
could be expected in August, ratifica-
September.
May Visit France Soon.
The Rhine pact negotiated by the late
Gustav StreSemann and AriStide BRAND
with Great Britain and Italy undertak-
ing 10 guarantee peace on the Rhine
In the event OF aggression by either
Germany or France. was an attempt To
assure the permanent peace which
France now would like to develop into
a genuine entente cordiale.
DR.. Luther, 1t is believed, has been
asked to tell Chancellor Bruening and
Foreign Minister Curtius that Paris
would welcome them for q discussion
OF political questions, and the impress
sion prevails that the German states
men may visit France sooner than haC
been generally expected.
The conservative newspaper lie Petit
Parisien, summarizing the French views
at this juncture, said today. 1t is in
! conceivable that Germany can hope fol
| financial assistance on big scale with
! out furnishing serious proofs of her po-
| litical good will. French public opinion
never could understand the granting o.
! large credits to a country where partl-
! sans of q policy OF aggression occupy The
/ center of the stage and do not even try
to conceal their antipathy."
No OhiciaI Statement.
At lie Bourget this morning DR.
Luther climbed into plane bound fol
| Berlin. There we're three other pas
! Sengers aboard
No Official statement was issued a
| the finance ministry and NJ. Flandin
head OF the department. went to tht
seashore for the week end, which viii
! extend over Bastille day.
Other ministers also who have beer
through the severe strain Of the recent
negotiations escaped to the country d
/ the seaside to store up fresh enera!
all be back on Wednesday for the ar
rival OF Col. Henry L. Stimson, thu
! American Secretary Of State.
! When he comes the issue will be dis
| armament. France has marshaled he
| ideas on that issue and undoubtedly
! will tell Col. Stimson that further re
: duction of ornaments must be mad
/ proportional to the increase of tn
| French national security. France be
lieves Germany can help in this.
The nature OF the French counte
! demands to DR.. Luther's request for sp
! proval of a loan and the seriousness
of the situation In Ger many were mad
plain in the press. lie Matin was of tn,
| opinion that the question was not o
written promises. but of the realization
| OF how urgent it was that German Of
f1cials should come to Paris for a tall
with Premier Laval.
Needs Guarantees"
Germany Is on the verge Of bank
ruptcy-of that there Is no doubt" tn,
paper said. France, through the BAN
OF France and other establishments
can help put her on her feet. But sh
needs Ruarantees-financial guarantee
that the withdrawal of capital in Ger
many will be held within REASONABLE,
| limits. political guarantees so that con
fidence can revive. Flandin exposed
these ideas with the greatest clearnes
to Luther"
Petit Parisien takes the same stanC
in these words: Since 1t is the cas-
OF Germany, whose attitude is Otter
varied in a disquieting manner, tn
guarantees must be both economic ant
political"
Echo de Paris says: I'VE are not il
a position at present to grant German
a loan after our generous gesture o
six days ago was SO little appreciated
by our debtors. Even IL the Reich gov
eminent brings itself to a sincere, pro
found act OF a nature to relax the strain
| toward France, will that suffice for tn
French banks to work together to saw
Germany from the crash that threaten
them by a loan Of three to four bill
lions? To ask the question Is almos
to answer It,"
~ruAscoNS WIGHT f,NSrUE