The Waterbury Democrat., 1931-07-02
UNITED STATES MAKES PLEA TO
 FRENCH GOVT
Asks Her to Join War Debt
 Suspension for Good of Herself and Whole World
By JOSEPH Fl. BAIRD

United Press Staff Correspondent)
 Washington, July 2.-(UP)-The United States government rested to- day on 8 business mans appeal to France to come into the war debt suspension project for the good of herself and the whole world.
 President Hoover's proposal for postponing all payments for 8 year would be far less costly to France than moratorium declared by Ger many, the United States pointed out. Further, this country urged, every nation must make sacrifices if the world is to recover from depression.
 These two arguments were set forth in an unusually frank note presented to the French government by Secretary of the Treasury Mellon and Ambassador Edge and made was drafted by Acting Secretary of State Castle and Senator Dwight Morrow, international financer. Cas- tie said it was received favorably in French official circles.
 France must choose between the Hoover plan and German morato- rum, this country asserted. Under the American proposal France would lose about $60,OO0,000. A German moratorium, the United States con- tended, would cost her $100,0O0,000 even if Unconditional reparations" payments were continued by Ger many. The American note intimated it was by no means certain Germany could maintain these payments.
 After this monetary appeal, the note pleaded with France to make a. sacrifice for the worlds benefit. The United States said it realized France was being called on to make a "substantial sacrifice" yet not as large as its own-$262,0 100000.
 "There is no escaping the fact" the note said, "that the world will not emerge from the present de- precision without temporary sacri- fees by all." ..
 Outlining the alternative to ac- ceptance of the Hoover plan, this government said:
 "We must assume that with the present situation in Germany and the failure of the American pro- posals, then Germany will unques- tionably give notice for the post ponement of all conditional repara- tions as provided in the Young plan and that this problem of inter-gov- ernmental payments will not be forthcoming. :,
 Therefore, in measuring that sacrifice necessary there can only be considered the effect of the uncon- ditional payments if Germany is able to find a foreign exchange neces- sary to meet these payments. If the American proposal shall fail and if unconditional payments are post poned under the provision Of the Young plan, and even assuming tha. unconditional payments are main tained. France would receive from these unconditional payments, after priorities have been excepted ap- proximately $105,000, 900. She would be obliged to pay:
 "(A) The guarantee fund o1 $10s, 100000 under the Young plan:
 "(B) $110.00O.000 to Great Bri- tain and the United States, approxl- mately. (War debts.)
 'swhereas here receipts from the unconditional reparations. even IT they be maintained, would be less than one-half this sum. Thus If the American proposal should fail ana the suspension provisions Of the Young plan be invoked by Germany then France will be the loser dur ing the forthcoming year Of general postponement by over $1O0,oOo,ooo.