Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-05

stood, furthermore, that Germany b to
provide by separate means the neces-
sary additional amounts to carry out
payments on the 1924 German external
loan).
2. That the French government
suggest that $26,o0o,00o Of the uncon-
san Snal for Dsd si Into the
should be made available for loans to
Central European countries, more par
ticularly those whose budgets are af-
fected by the suspension Of reparation
payments. The American Government
did not feel justified In accepting this
proposal, but understands that the
French government considers that a
central bank credit would be an ade-
quate substitute for the original French
suggestion. The American Government
points out, however, that action by the
central banks cannot be made the SUBJ
ject OF an agreement between govern
Ydents.
Differed on Time.
.. That the two governments differed
as to the time over which the suspended
payments should be funded, including
Of course, both conditional and I'm.
conditional PREPARATIONS The Ameri-
can Government understands that the
French government Is now willing to
defer all repayments for two years
from the end of the year of post
ponement and thereafter that they be
repaid over q period Of 10 years in
equal annual or semi-annual install
ments providing certain other uues-
tons are satisfactorily disposed of. This
FUNDING period is satisfactory to the
American Government.
4. AS to the guarantee fund, we
understand that the French government
now indicates that 1t can drop this
from the discussion 80 far as the Amer
lean Government is concerned.
5. That in so far as deliveries in kind
are concerned. the American Govern
Tnent has consistently taken the DO
sition that the solution Of the problem
arising from existing contracts falling
due in the year July !, 1881, to June
80, 1882, should be a matter for later
discussion and solution by experts of
the different interested powers, the
French having already agreed that they
Will retain nothing during the years Of
suspension. The solution as worked out
should, OF course, be within the spirit
OF the Presidents proposal.
Details TO Committee,
1t appears, therefore, that on the
major question, namely, the principle Of
continuity of the unconditional pay
ments. the method of affording COM
plete relief to Germany by the reloaning
OF the sum deposited on account Of the
unconditional payment with the Bank
Of International Settlement, the prin-
cfple Of complete suspension of all pay
ments for one year, and the period Of
the funding Of the suspended payment.
the two Governments are in substantial
accord. The other questions do not
appear to be Of such a character as to
justify further postponing of final
agreement between the two Govern
ments, particularly as they involve diff
cult technical questions under the
Young plan. to which the United States
is not party. The American Govern
ment suggests that they could with
propriety be left to a committee OF ex-
perts from the treasures of the prin-
cipal interested powers, but that they
should be settled within the spirit Of
the Presidents proposal.
The American Government offers a
positive form Of termination of the
negotiations, and that Is that the
French Government should accept the
Presidents proposal and refer all tech
nical questions not already agreed upon
to committee, as suggested above,
with instructions that they should work
them out within the spirit of the Presi-
dents proposal