The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-07-11
u. 5. FORCED
IN BITTER ROW
ON WAR DEBTS
Allies Admit Lausanne Pact
Mere Scrap of Paper If
Americans BaIk.
WASHINGTON UNEASY
America in No Mind to
Cancel, or Even Cut,
Any Payments.
BY WILLIAM PHILIP SIMMS
Scripps- Howard Foreign Editor

WASHINGTON, July 1.-THE
bittereSt wrangle yet between the
allies and the United States over
war debts was brewing today as a
determined and united Europe pre-
pared to demand radical reduction
if not cancellation of the $11 ,000,-
100000 due this country.
The statement of Premier Ed
Guard Herriot of France cleared the
air of any misunderstanding on this
score, if, indeed, any existed.
He made it plain that unless the
United States wipes out the war
debts, in whole or in part, the
whole Lausanne agreement will be-
come only another scrap of paper.
This warning, however, scarcely
was needed. Behind the scenes here
it has been felt from the beginning
that this country would either have
to match the Lausanne gesture with
one of its own, else shoulder the
blame for wrecking Europe's latest
move to t'liquidate the war"
Washington Is Worried
Once before when the question of
war debts was up, the United States
was dragged through the mud of
Europe, and pilloried as Uncle
Shylock" This time the stage seems
set for more of the same.
Washington is on tenderhooks over
the turn the issue has taken.
1t rejoices that Europe appears at
last to be seeing the light, but is I'M
easy over the next moves to be
taken.
That revision is inevitable is ad-
mitted. That some scaling down
will be necessary is regarded as
likely.
But the White House and Capitol
hill do not see eye to eye on the
issue and, in addition to the inter-
national quarrel over the matter,
domestic row of large proportion APP
pears probable.
Capitol hill-which, in the end,
must ratify any new debt agreement
the administration may make-is in
clined to get hot under the collar
whenever the subject is mentioned.
Already Well Unidentified
1t seems no obligation on the part
of this country to cancel or even
drastically reduce, Europe'S war
debts, merely because Europe, real
izing she has collected all she will
ever get from Germany, nobly-but
Observation-Disclosures the balance
at Lausanne.
AS Capitol hill sees it, the allies.
in reality, already have been pretty
handsomely Unidentified by Ger
many.
They took over all Germanys
colonies, embracing more than four
times as much territory as Germany
herself.
Furthermore they seized II per
cent of the German homeland, in
Guiding IS per cent of all the arabic
land, II per cent of the grain-grow-
ing area, Is per cent of her coal pro-
duction, and Sc per cent of her iron
output.
Oppose Drastic Reduction
In addition, it is further observed,
Germany was forced to fork over to
the allies her merchant ships as
well as her fleet, her cables, radio
stations, copyrights, patents and
other enterprises and investments.
All told, it is reckoned, the allies
have collected upward of $50,0O0,-
100000 from Germany, none of
which was shared by the United
States.
Accordingly, Capitol hill appears
opposed to any drastic reduction of
war debts.
The attitude of the White House
appears to be somewhat more re-
aliStic.
In effect, it is that blood can not
be gotten from a turnip.
Each of the allies, apparently,
will be required to pay according
to capacity
Upon request. each case will be
considered on its merits.
World disarmament or some other
concession must accompany debt
reduction, if the pill is to be swal-
lowed without wry face in this
country.