Evening star., 1931-06-26
debt AGREEMENT
I IS FORECAST HERE
Secretary Stimson Indicates
U. S. Willing to Nego-
tiate Methods.
CONTINUED From First Page,

CONTINUED From First Page.l
postponernenk for one year Of the pay
nentS under such agreements.
"The question Of the method by
which this postponement Is to be ac-
complished and the ultimate payment
of the postponed amounts are matters
requiring negotiation and settlement
between different governments. There
are suggestions in the method proposed
by the French government which do
rot accomplish the fun measure of re-
lief to debtor nations corresponding to
the Presidents plan and must, there
fore, be the subject Of further discus
sion with view to q modification that
will bring the full measure Of accord Of
which the fine evidence Of cooperation
in the French note gives every hope OF
success. In view Of the action already
taken by some governments in ac-
ceptance of the Presidents plan and the
corresponding suspension Of payments
on intergovernmental debts due July /,
Ambassador Edge and Secretary Mellon
are engaged in these discussions with
the French government with view to
early conclusions.
Advance Reports Correct.
The content Of the reply Of the
French government to the Hoover pro-
poSal has been forecast in press dis
patches in Paris. The cordial terms
used in the note, which is signed by
the French minister Of foreign affairs,
BRAND, indicates the willingness Of that
country to do everything in its power
to aid in the economic situation.
The advance reports of the French
reply were correct in asserting that
France proposes that the unconditional
part Of the German reparations,
amounting to 42 per cent OF the whole.
understanding that this money shall
be loaned back to Germany.
At the outset Of its reply, the French
government said:
"The French government has exam
ined with keen interest the proposal OF
the President of the United States and
declares itself in cordial agreement with
the lofty sentiments which inspired the
said proposal.
"The French government, more than
any other, is desirous of seeing aftlrmed
In action for the economic reconstruc-
ton Of the world a solidarity with
which it has always been inspired. both
in accepting the successive reductions
In the German debt and in executing
In advance the evacuation Of the third
Rhineland zone in exchange for COM
plete and deflnItive settlement OF the
program Of reparations decided upon at
Geneva September is, 1928"
Offers Counter Proposal.
The French government then gives
the nub Of its counter-proposaI' say
"That is why the French government
declares its readiness, subject to the APP
proval of Parliament. to place at the
disposal of the Bank Of international
Settlements a sum equal to its share for
one year Of the on-postponable an
nuity with the sole exception OF the
amounts necessary to the execution OF
the balances OF the current contract Tor
payments in tirne-a proceeding wnlcn.
moreover, Is advantageous to German
economy.
I'm making this proposal. the French
government expects that the other
benehciaries under the Young plan VIII
ADOPT the same decision, and 1t even
hopes that other measures may be taken
to favor the beneficial restoration OF
credit and confidence in the world"
The French government ADDED tnat
these sums thus turned over to the
Bank of International Settlements could
be used at once for improving credit In
Germany as well as in the countries OF
Central Europe, especially those In
which the suspension of the Young
Plan during one year might create
financial or economic disturbance, and
it added, that 1t goes without saying
that the amount so employed would
again become available at the expira-
ton of the period of one year contem-
plated as the limit Of the provisional
suspension OF the Young Plan"
Aid to Germany Dominant.
The French reply pointed out that
it would be advisable to contemplate
before the expiration Of the period OF
one year IAN examination Of meas
ures to be taken by Germany for the
resumption of her payments"
The French declared that their pro-
posal and the adjustment which will
be necessary appear to be perfectly
compatible with the predominant idea
Of President Hoover's proposal.
The dominant idea of the Hoover pro-
posal has been aid to Germany to pre-
vent that countryS financial and gov
ernmental collapse 1t was pointed out
here today that the counter proposal
Of the French does not give quite the
same measure of aid to Germany as
that which would follow under the
Hoover plan.
Under the Hoover plan 1t would not
be necessary for Germany to raise
through taxation and pay out the un-
conditional part of the reparationS due
this coming year. The French plan con-
1