Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-03
Feeling of Optimism Here Due
to News Received From
Mellon and Edge, Who Meet
Laval This Afternoon.
GUARANTEE FUND HELD
CHIEF STUMBLING BLOCK
Although White House and State
Department Are Silent, 1t Is I'm
derstood France Has Reacted
Favorably to U. S. Memorandum
Presented on Wednesday.
BY G. GOULD LINCOLN.

Hope that an agreement vii
be reached by the American ano
French governments on the Hoo
yer ntergovernmental debt anC
PREPARATIONS suspension plan be-
fore the close Of today was eX-
pressed here.
The feeling of optimism was due
to information received here from,
Secretary Mellon and Ambassador
Edge, who are negotiating with
the French government in Paris
They are to meet Premier Lava.
and his associates in the confer
ence at pm. today
While all details of the hoped
for agreement have been withheld
by the White House and State De
partment, it is understood that
the French have reacted favorably
to the memorandum presented By
this Government to the negotia-
tors on Wednesday,, setting forth
the position of the United States
and suggesting to the French GER
tain notifications in their atti-
tude. Indeed, in the main, it is
believed the American point OF
view has been accepted.
Mellon Talks on Telephone.
The optimism of the administration
increased and officials here have been
in communication by telephone this
morning with Secretary Mellon. The
hope is for a final agreement in prin-
ciple by the time the conference be-
tween Mr.. Mellon and Ambassador
Edge and the French representatives
is concluded this evening.
1t was indicated that there would
be some details still to be worked out,
but that the agreement If it is reached,
will cover all the major points which
have been in dispute, including the
guaranteed fund.
Generally speaking, the impression is
conveyed here that the French have
met satisfactorily the proposals of the
American Government in regard to the
debt suspension and the need of grant
ing as much aid as possible to Ger
many to meet her difficulties.
Aid to International Relations.
The suggestion was made here to-
day in official circles that not only
would the debt suspension plan be of
assistance economically but that it
would make for better international
relations and that in the future it would
be possible for the French and the
Germans to talk this over face to face
amicably.
Treasury experts, it was said, of all
the countries involved in the debt sus-
pension plan, will have the job of work.
ing out the details as they affect the
various countries.
The opinion was expressed that the
meeting of Secretary Mellon and Am
bassador Edge with the French, which
takes place after 8 o'clock this after
noon, Washington time, but after 8
O'Clock Paris time, may last several
hours, especially if there is to he a
final agreement reached.
Guarantee Fund, Problem.
One of the chief stumbling blocks
In the way of agreement by the French
has been Frances anxiety over the So
called guarantee fund, the fund which
France would be compelled to deposit
with the Bank of International Settle
ments in the event of a declaration
of moratorium by Germany on the
payment of reparations. This problem
however. is declared to be in the way
of adjustment, although as has been
pointed cut by the American Govern
ment, it is an adjustment which must
be made by the signatories to the Young
plan for German reparations, of which
this country is not one.
So far as the other matters at issue
are concerned, France is believed to
have yielded longer time for the pay
ment of the postponed debt and repara-
ton payments in accordance with the
suggestions Of the United States, eX-
tending these payments for 10 years o,
more. There is a general understand
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