Evening star., 1931-06-23
French WANT TINE
FOR DEBT ACTION
Consider Proposal Too I'M
portant to Be Submitted
to Any Snap Judgment.
M PAUL SCOTT SowRER.


PARIS. France, June 2S-The eyes
OF the entire world are turned toward
Paris today TO ascertain the fate Of the
Hoover plan for year holiday in
reparations and war debts payments,
and turned in vain.
The French government met toward
noon to discuss the plan and draft the
urgent reply which the American
Government had requested. But after
hearing the various viewpoints the gov
ernment decided merely to resume its
deliberations tomorrow.
The affair is felt to be too important
for q snap decision. There Is also q
somewhat bitter feeling that, II the need
for hurry Is so great, time might have
been saved by Germany or Great
Britain or the United States by ap-
preaching France some days ago before
the Hoover plan was formally pub
lished.
\Further Facts Desired.
Also France desires to siave further
information from the United States,
and possibly from Germany, and wishes
to consult Great Britain, Belgium and
Italy and others. It is understood that
Belgium is not highly favorable to
the plan, and that italy, while willing
to accept, proposes to make, this
acceptance contingent on Germany's
abandoning the proposed Austro-G German
customs union.
The main French objections to the
Hoover plan seem to be that It does
not give sufficient guarantees for the
future OF the Young plan and repara-
tons payments, and that 1t entirely
disregards the political aspects of the
German situation. France seems to be
willing to go long way to help Ger
many, but only on condition that Ger
many shows q willingness to drop its
demands for treaty revision.
French political circles are agog over
the entire situation. Already four in
terpellations have been registered in the
Chamber Of Deputies, which the gov
eminent Will doubtless succeed In post
poning until Friday, although it is fully
recognized that whatever the govern
ment decides will have to be submitted
in due form to both the Senate and
the Chamber before 1t becomes final.
Flandin In Conferences.
Pierre -Etienne Flandin, French min
lister Of finance, conferred yesterday
with various experts, including Pierre
Quesnay, managing director of the
Bank for internationally Settlements,
and then later with President Paul
Doumer and Premier Pierre Laval, and
saw Foreign Minister Aristide BRAND
today. The gains and losses of the va
riouS countries under President Hoover's
debt holiday plan, as estimated by the
French experts, is roughly as follows:
Germany gains 1878 8000, 600, of which
1892, ,000,0 900 profits the budget and the
rest profits the railroads.
The United States loses $230, 900 900,
France, $92,000,000; Belgium, about
$50, 100000; Italy, $l0,0o0,000, and
Great Britain Jugoslavia, Roumania,
Greece and Poland lesser sums.
The German budget it Is estimated,
would be Lghtened by about one-twen-
tieth.
French Position Stated.
AS far as the present year Is con-
cerned, it Is said, the Hoover plan would
be no worse for France than applica-
ton OF the Young plan moratorium, for
while 1t is true that France under this
moratorium would yet receive $50, o,000,-
900 from Germany on the unconditional
part OF the annuity, France at the
same time would be obliged to pay tenn
porarily to the bank for international
settlements the so-called guaranty fund
of 5000 900. 1t Is therefore not so
much the immediate loss as the future
prospects which are pre- occupying the
French government.
The difficulty of refusing the Hoover
plan is fully realized. The favorable
reaction yesterday on all the worlds
stock exchanges. including that of
Paris. undoubtedly impressed French
financial and government circles.
French leaders, therefore, are not in
sensible to the possible beneficial psy-
Geological effect of the Hoover plan,
which might even, 1t Is suggested, prove
TO be the turning point Of the world
depression.
Frances first preoccupation is to
keep the Young plan intact. She has
spent, 1t Is declared, nearly $10,000,-
100000 Of her own money to repair
war damages, and on this sum the
French people are paying crushing
Finances Are Debated.
Prof. Rivaud of the Sorbonne, In q
debate yesterday with the German, DR..
Bernard Dernberg, before the French
declared that whereas the reparatiol.s
under the Young plan at most never
cost Germany more than 1000, ,00O, 900
marks ($476, ,000, 900 q year in q total
budget Of IL 900 000, 900 marks ($2,618,-
000, ,000), the French debt, internal and
external, mostly due to the war, is
costing France $4,000, 5000 francs
($880, 900 ,000) year in q total budget
of about $4,000, ,000, 900 francs ($2,00o,-
00O, ,0OO).
He claimed that German unemploy-
De-
Britain and the United States and said
that Germany's troubles were due
mainly to bad financial administration
and to political agitation, which hurts
Germany'S credit
This is what most French observers
believe. The French, therefore, intend
to make every effort to prevent a re-
vision of the Young plan, which they
were told a year ago was flnal and
irrevocable.
Plan Deemed insufficient.
In the second place, while they see
the usefulness of trying to help Ger
many in its present plight, they do not
feel that the Hoover plan Is In itself
sufficient. They think that Germany
will need large international credits, In
furnishing which France will be ex-
pected to play a large part, and they
believe that 1t will be difficult for Ger
many to get these credits unless polit-
ical agitation ceases.
There Is talk therefore Of proposing,
in addition to q reparations holiday, a
political holiday, during which the Ger
man government would promise to re-
frain from pressing the Austro- German
customs union or propaganda for the
revision of the eastern frontiers and for
rearmament Of Germany in case other
countries at the Disarmament Confer
ence fail to meet the German ideas Of
what should be done.
Meanwhile, it is not perhaps SUM-
GENTLY realized In the United States