Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-23

~ ARTS downward revision Of
reparations and war, debts is
now considered highly probable
4 within the next six months to
one year by international bank
ing authorities Since the Hoover
moratorium plan was announced In
mid-Jure this prospect has been loom
ing with increasing probability. On
Tuesday the Wiggin Bankers Commit
tee studying Germany's credit and the
financial crisis at Basel issued its re-
port. Despite its extreme care In the
wording Of the report, it recommended
by implication that a reduction in Ger
many's payments should be seriously
considered for the near future.
One of the banking officials con-
cerned summarized the report by say
ing: "The report does not recommend
Preparations revision IN so many WORDS
but when you analyZe 1t that is what 1t
boiIs down to-" He added that the
bankers expect the governments in
volved to take some action on the rep
arations slash when they meet on Sep
tember 5. Thus the radical and def
mite alteration of the complete and
definite" reparations agreement known
as the Young plan and now less than
two years old in application has been
placed Europe's international agenda.
because Europe is generally agreed that
further slash of Germany's repara-
tons Is impossible without a common
sUrate reduction of Europe's war debts
to America Indeed, from the fragile
condition Of the European nations
economy and from the national budgets,
including Germany's, Britair1's, Bel
GUMS and Austria's, to name only
few. which are in the red, this con-
Il. ~ tHa
only way the international financial OBJ
legations can sensibly be debated Is BY
applying the sponge all the way around
the table, and that is what is extremely
likely to happen before 1882 passes into
history.
Unified Action Dictated.
One excellent reason for this, In the
minds of European economists, is that
each nations depression is now every
body's depression, as the Basel experts
report on Germany frankly states. Ac-
cordingly, unified policy and unified ac-
ton is dictated and debt revision has
emerged-in a short space Of time
which no one could have enviSaged two
years ago-as one Of the main columns
Of this common program.
In relation to this development It IS
interesting to note the two articles
which appeared In the Paris press dur
ing the past week, both of them before
the Basel experts report was decided
upon or signed. One of these, IN lie
Matin, by stephen Lausanne, its po-
litical editor, outlines the cardinal
points Of the French attitude toward
revision The other. In L'Echo, Is an
interview with FIandin, minister of H.
nance, who frankly discusses the same
subject OF reparations revision. Lau-
zanne states three principles: One, that
France will not tolerate q secret dis
cnssion Of the reparations problem;
two, that France viii not agree to COM
prete reparations cancellation in any
case, and. three, that France has no
intention OF permitting PREPARATIONS
proper being placed on the same foot
ing as war debts.
The same article states that when
Chancellor Snowden raised the queS-
ton at the London conference. Fiandln
replied that France would refuse 70
discuss it separately from war debts
In other words, that reparati0ns reduc-
! ton. in French opinion, must be accom-
panied BY a reduction Of war debts 70
the United States. This undoubtedly
echoes French official opinion and
means that II Germany's reparations
are to be slashed, Washington's o1er
to reduce war debts must be 3 pre-
lude TO such reductions or the two be
made simultaneously.
Debts Up TO washington.
Flandin IN the interview with LEcho
stated clearly that war debt revision
is entirely q matter for washington
to decide. The minister Of finance
added that no one IN France, OF any
party whatsoever. would ever admit that
Frances amounts received from Ger
many for war damages proper should
be Cancelled or ren0uncsd. he point
ed out the portion Of the repa-
rations France Is now entitled 70 ~
this category Is very heavily below the
asn6rnt abe has expended 10 yehnih TIE