Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-28

established, but worrying certain imam
eial experts, and likely to develop TO q
point where the whole face of Frances
counter proposal to washington mlgnt
be changed, is the matter OF deliveries
in kind arranged under the Young plan,
whereby to ease Germany's financial
payments and to aid her economy she
Is permitted to cover a portion of her
reparations payments in goods and ma
terials on q sliding scale during the
early years Of the life Of the Young
Plan For the current year virtually all
Frances conditional receipts from Ger
meny-lhat portion on which the
Young plan permits delay-are IN
deliveries in kind To total value OF
334 900 900 marks (S79, 1925 ,000).
For weeks past 1t has been debata-
BILE question among PREPARATIONS experts
and officials Of the bank for interna-
tional settlements whether deliveries in
kind under the Young plan would be
subject TO any suspension that might
be declared, and the fact Is that legal
experts appear to doubt that they are
so subject Therefore 1t Is possible that
France would still receive her deliveries
In kind from Germany even under the
Hoover plan. and this would save for
her 334 100000 marks, or virtually all
the conditional payments which the
others are asked to sacrifice.
U. S. May Oppose Scheme.
In this respect one phrase in the
French reply assumes great importance
The French agree to Weld the uncohdl-
tional annuity by turning to loan uses
under the sole reserve for the amounts
necessary to the execution Of the bal
ance Of the contracts of deliveries in
kind now in operation"
oGt m iC
whether by this France expects to OBJ
tain the whole or a laree part Of her
deliveries in kind under the Hoover
plan, and whether, If this Is so. Wash
ington will agree to such arrangement.
which, Of course. would decidedly reduce
Frances sacrifice. The French argu-
ment is that deliveries in kind are a
constructive help to Germany's eco
nomic production, and If eliminated
would reduce radically Germany's ex-
ports.
France May Demand Assurances.
Aside from these obstacles, there is
reason to believe that the French min
listers reminded MFR. Mellon that they
felt justified IN expecting certain noliti-
cal reassuranees from Germany which
might not be termed conditions. In any
case. France Is likely TO demand. in re-
turn for ACCEPTING the Hoover plan in
principle, that assurances be given her.
as follows:
That the large sum that Germany
will have at her disposal as a result
of the debt holiday will not be used in
part by Berlin for loans to the Soviet
Russian government-as limited in the
French notes phrase, mot to aid
dumping"
That Germany renounce all projects
of anschluss political union) with
Austria.
That Germany promise to use no part
of these sums for increased ornaments
These are political issues in which
the Americans are scarcely likely to in
volve themselves, but which ale certain
to be argued boldly or limited at here
and which surely will be posed by the
French to the German ministers when
they come to Paris in the near future.
Explain Plan TO Americans.
without these political differences.
however, a sufficient number of tech
nical problems relative to reparationS
has already confronted Mr.. Mellon to
require considerable negotiation, and
some of them may prove difficult. 1t
is stated that the greater part of the
S-hour conversations of this afternoon
was occupied by an explanation of the
French note and also of the function of
the Young plan. Apropos of this, it
is understood from French sources that
much time was required to clarity GER
tain technical aspects Of the Young
plan with which the Americans were
not entirely familiar.
For this reason and for the rapid
termination of the negotiations, it is
viewed in some French circles as re-
grettable that American reparations ex-
perts we're mot included among the
American spokesman. The CONVERSE
tons today were occupied with ex-
plantations of the political limitations
under which Mr.. Hoover labored on &C
count of the American Senate, the
French governments absolute restric-
tions as imposed by the Chamber of
Deputies, and the latter's vote ut am.
after a 15-hcur session.
(Gepyright, le3D.