Evening star., 1931-06-22
DEBT DELAY PLAN
REPLIES AWAITED
Diplomatic Circles Fear
Frances Response to
Hoover Message.
BY CONSTANTINE BROWN.

BY CONSTANTINE BROWN.
President Hoover's move for a repara-
tions and debt holiday is believed to
have been hastened by the receipts last
Thursday of alarming confidential re-
ports from Germany to the State De-
partment and careful examination OF
dispatches from Secretary Mellon, who
last week is said to have thoroughly
discussed the matter with Prime Min
lister Ramsay Macdonald in London.
Thursdays are set aside by Secretary
Of State Henry L. Stimson and Unoer-
secretary of State William r: Castle,
jr., to receive representatives OF foreign
nations.
Sees Forest Fire."
Last Thursday Mr.. Stimson was par
ticularly worried over the situation IN
Germany, which he compared with
dangerous forest fire." Reports had
reached the State Department that the
flight of capital from Germany was
proceeding at an alarming pace. He
expressed his concern to French Am
bassador Paul Claudel and stated that
the time had come when the principal
nations of the world would have TO act
to prevent a catastrophe, Whlcn ap-
peared inevitable if Germany's eco
nomic structure were allowed to col
lapse.
Hoover. who had Just returned from his
trip to the Middle West, Secretary
StiInson Friday afternoon summoned
the Ambassadors of France, Germany,
Great Britain and Belgium. He in
formed the diplomats in the strictest
confidence of the Presidents desire that
they advise their respective govern
ments of his intention to ask Congress
10 agree to years suspension OF all
debts and interest payments, excepting
commercial debts, if, in turn, the Euro
pean countries would agree to years
Suspension of all reparations payments
under the Young plan. Mr.. Stimson
emphasized the fact that this would not
mean in any way an all-around cancel
lation of debts and reparations, but
merely a postponement of payments to
give Germany breathing spell.
Favorable Response Likely.
The Ambassadors informed their
governments Immediately Of this i'm
portant step of the President. In diplo-
matte circles it is felt that most of the
nations will reply satisfactorily to the
Presidents appeal. The only exception
may be France.
Great Britain, which turns over to
this country virtually all payments from
her former allies and Germany, Is ex-
pected to receive the American proposal
enthusiastically. 1t Is stated In Wen
informed quarters that this matter was
thoroughly discussed last week between
Secretary of the Treasury Andrew Mel
lon and Prime Minister Ramsay Mac
Donald, Foreign Minister Arthur Hen
derson and Chancellor of the Exchequer
Philip SnoWden, It is further said that
the President was encouraged to make
his proposal after careful eXamlna-
ton of dispatches received here from
Mr.. Mellon, who is still in England.
The attitude of Italy Is unknown,
but indications are that Premier Mus
solini will have no objections to Presi-
dent Hoover's plan, even II 1t may
slightly hurt Italy's finances.
The great unknown Is France. That
country stands to lose more than any
other European country by the COM
plete suspension of reparations pay
mentS France pays next year to the
United States something like $4,000
600 and has to receive from Germany
approximately $110,000,000. This figure
alone is sufficient explanation why a
good deal of opposition must be eX-
pected from France.
In addition to this, one must take
into consideration public feeling IN
France, which Is reported to be less
friendly toward Germany today than
it was few months ago, and also the
fact that Aristide Brands position and
prestige in the cabinet and the coun-
try are much impaired.
In spite of these obvious difficulties,
the feeling is that France cannot
easily afford to turn down President
Hoover's proposition. To begin with
she cannot assume the moral response
bility of being the cause Of Germany's
complete breakdown. Secondly, even
the most inveterate anti German poll
reached the conclusion that in the
presence of the dangerous economic de-
preston something must be done to
prevent a catastrophe, which would
injure France as much as it would the
rest of the world.
Would Postpone Some.
France, it is said here, would prefer
Germany to obtain a moratorium in
accordance with the Young plan. That
moratorium would apply only to the
conditional payments, while the uncon-
6itional payments Of the reparations
would continue to be paid to the Bank
for International Settlements at Basel
to be distributed in accordance with
JIle agreements TedCueQ al Opd t1lu
revised at The Hague Conference.
But President Hoover favors volun-
tary suspension of all payments. Thus
France would have to renopnce for
one year all payments she is entitled to
receive from Germany. This would
mean, of course, a heavy sacrifice for
France. Whether she will agree to this
Internationally is uncertain.
Well informed persons, however, con-
slider it likely that after certain
amount of haggling the French govern
ment will accept President Hoover's
proposal in some modified form. First
of all, France is today, after the United
States, the richest and most prosperous
country in the world.
Furthermore, it is said that II France
is willing to agree to a moratorium for
a year, there is no real reason why she
should oppose a suspension of payment.
The difference between the sums she
has to forego by the moratorium and
the complete suspension of payments is
not sufficiently appreciable, when one
considers what is at stake today if she
maintains an adamant attitude.
(Copyright, 1917