The Washington times., 1931-10-26
FACES FIGHT
ON POLICY
CHANGE
Abandonment Of Old Hughes
Theory, Held for 10 Years,
Called Step to Cancellation

Theory, Held for 10 Years,
Called Step to Cancellation
(cOntinued From Page -
to. be the, outstanding achieve
ment of the HooverLAval con-
versations.
As for the abandonment Of the
Hughes theory that there is no
relationship between debts and
reparations, a contention. which
the Harding and Coolidge ad.
miniStrations doggedly defended
for, 10 years, the Administration
view is that shifting conditions
and circumstances made a change
imperative.
II Is true that to obtain a re-
duction in reparations, Germany
will have to work through the
machinery Of the Young Plan, q
disappointing and humiliating
process for her, but France would
hear of no other method.
: ParIiawents in the Way
And there will be no action, on
the debts unless and until Ger.
many has been afforded repara.
tons relief. Once that, relief is
granted, the American Govern
Hnent will Sympathetically enter
tain proposals for commensurate
Allied debt reductions, based
upon a renewed study Of "capas
city to pay In each case.
It was pointed out, however,
that behind M. Laval stands the
French Parliament, and behind
Mr.. Hoover stands the American
Congress, either one Of which, or
both, may upset all their care.
fully planned program.
Congress, particularly, has
jealousy adhered to the Hughes
theory Of absolutely disaSsoci.
ating debts and reparations.
General Results
Secretary of State StimSon's
only comment today was:
Premier Laval's visit accom-
hShed all / expected and full
filled my greatest anticipation"
General results of the Hoover
Laval conferences were:
Disarmament - Very little
hope. President Hoover was
unable to Guarantee France the
security she desires, and COnse:
Quently France il unwilling to
reduce materially her military
and naval establishment. The
outlook for the Geneva disar.
mament conference in Febru-
airy ID very blue. It may be
postponed.
German MOratOrium-It was
recognized that it win have to
be extended beyond the enc
year period expiring next June.
The initiative for its extension,
however. will have to be taken
by Europe.
GOld-France agreed to stricter
regulation Of her Withdrawals
from this country to avoid any
aspect Of an attack upon the
American dollar. Both cOun-
tries are agreed upon the Inn
pOrtance of maintaining the
gold standard and upon the
necessity Of stabilizing currency
in those countries which have
departed from it.
General - France and the
United States, as the richest
and politically the most stable
governments i'm the world, must
cooperate to q greater degree
than in the past upon world :
problems general, to the end Of
tElsuring stability where itexistS
ana promoting It where 1t Is
nOnexiStent or In jeopardy.
The conversations between Pres
1dent Hoover and M. Laval, par
ticipated 10 tn some extent by
Secretaries Stimson and Mellon
and other officials Of this Gov.
eminent, were described today as
having been conducted with ex-
ceeding frankneSS on both sides.
"SOre Spots Cited
M. Laval was told diplomat
ically but nevertheless .bluntly
that there can be no expecta-
ton Of much American cooper
alton in Europe until Europe has
settled some Of the political sore
spots that continue to plague all
relationships there.
Moreover, it was stated, M. La
val was Informed that in the
adjustment Of these problems Eu-
rope need not look to the United
States for participation, This
country viii regard sympatheti-
cally efforts at their solution but
take no actual part.