Evening star., 1931-06-21
HOOVER. PROPOSES
3POSTPON|NG DEBTS
Plan Announced to Aid
World in Economic
Recovery.
CONTINUED From First Page.)


tempt to extract any sum beyond the
capacity of any debtor to pay"
President Hoover denied that the
United States, in advancing this plan
was abandoning its policy not to be
involved in strictly European problems,
of which the payment of the German
reparations is one. He said that the
proposal represents our willingness to
make a contribution to the early res
toration of world prosperity. in which
our own people haves so deep an in
terest."
ArmamentS Unaffected.
The President said that the proposal
had no direct reference to the limita-
tion of armamentS; that promises to
reduce armaments would not be made
requisite to the fulflllment ofSthe plan.
He said. however, that it was the hope
of the United States that the nations
of Europe would bear in mind the
keen desire of this country to see the
burdens due to competitive ornaments
reduced materially.
while this action has no bearing on
the conference for limitation of land
armaments, to be held next February" "
said the President. lin as much as the
burden of competitive ornaments has
sion, We trust that by this evidence OF
our desire to assist we shall have con-
tributed to the good will which is so
necessary in the solution of this major
question"
1t is taken for granted that Germany
will hail the plan for a postponement
OF reparation payments with Joy, al
though Germany has keen desire for
a readjustment of the reparations to a
figure which they believe they can more
nearly meet. The present plan, how
ever, looks only to postponement of
reparation payments. II there is to be
Is q matter which the allies and Ger
many will have to deal with, not, the
United States.
The debtor nations to the United
States which will be affected by the
plan are Great Britain, France, Italy,
Belgium, Czechoslovakia ESthonia, Fin
land, Greece, Hungary, Latvia, Lithu-
ania, Poland, Rumania. and JugoSlavia.
President Hoover does not consider
the problem presented by the economic
depression in the world and the plan
for relief he has put forward partisan
political problem, but a national prob
lem.
In other words, he is not advancing
American proposal, which should have
the united support of the country.
Time for Authorization.
No special session of Congress is in
contemplation The payment CT in
terest and principal due this country
on the foreign debts falls December
Is. The Congress is to assemble the
first Monday in December. If there is
general approval of the plan. the neces-
sary legislation to authorize the action
proposed by the President can be put
forward before December Is.
The reception accorded the plan ad-
vanced by President Hoover by the
European nations is awaited here with
the keenest interest. The early reac-
tionS in those countries to the first
statement of the President that some
plan was in process of consideration
looking to aid by. this country in the
economic muddle were enthusiastic.
Whether the plan in all its details as
now announced will be approved re-
mains to be seen. What some of the
allied nations will say to the proposal
that they postpone payment by Ger
many Of the reparationS for the period
of year, is not known.
The immediate and impelling reason
Tor the advancement of the plan is
found in the situation which confronts
Germany. That country has made it
clear that it has come to the last straw
in the matter Of reparation payments,
and Of taxation to raise the money re-
quired for these payments. The present
German government has tntimated that
1t proposes to go forward, however, with
those payments even If 1t breaks the
German government and German ma
ton. The alternative which Germany
appears to have. presented to its cred-
itors is some measure of relief from
these payments or the collapse finan-
cially and governmentally of Germany.
The allies will have to determine
whether they are willing to make some
concessions, either in postponement or
reduction, or both. of the reparation pay
ments, or run the risk of the failure of
Germany to meet her obligations, the
overthrow of her government and a
situation In which there will be no pay
ment of reparations.
Fear Communism.
II the present government falls in
Germany the Hitlerites, who proclaim
their determination not to make any
reparation payments. may succeed. The
fear Is expressed, however, that the
HitleEteS in turn would fall and Com
munlsin become the order of the day in
Germany. The nations of Europe have
2PECIAT NnTVrEC