Evening star., 1932-11-25
CONTROVERSY.
is HELD S|MPL|F|ED.
Roosevelt Conference
Gives Europe Truth on
Policy Continuation.
BY DAVID LAWRENCE.

While outwardly little seems to have
been accomplished in the conference
between President Hoover and Presi-
dent-elect Roosevelt. actually substan-
tial progress has been made on several
points so essential that it may be said
the debt problem has been clarified, II
net moved somewhat nearer a solution.
First, united front to Europa has
been presented by the Republican and
Democratic parties through their
spokesmen-the President and Presi-
dent-elect Not only has there been
unanimous insistence on the December
Is payments, with some easing Of the
exchange problem for Great Britain,
but the implications of the Lausanne
agreement have been refuted by
America. What concessions the allies
have made on German reparations have
nothing to do with allied obligations
to the United States.
Second, hope of ultimate revision on
the basis of capacity to pay has been
given by the incoming as well as the
outgoing President of the United States.
Such revision, it is true, must be based
on showing of facts relative to ca
pacity to pay, and Congress finally must
agree to any alteration Of existing
agreements. but the United States does
not refuse to talk about modification
Indeed. that is the sole subject Of any
discussion the moment a hearing is
granted.
Early Farley Futile.
It would not be surprising to have
the European governments take advan-
Snge Immediately of this hint.
But it goes without saying that until
Mr.. Roosevelt names his Secretary OF
State, the foreign governments will nnd
II futile to begin conversations here or
abroad. Also, If there is no special
session of Congress called by Mr..
Roosevelt in the Spring no immediate
approval can be given to any recon-
nlendations made by the new President.
The next payments are due July 10,
1888. Europe's effort will be to secure
some improvement of the debt condi-
tions by that time, though the United
States may then have to rep,y again
that there can be no action till Con-
gress meets. It may be, of course, that
Mr.. Roosevelt will be compelled by do
mestic circumstances to call an extra
session in the Spring, in which case the
matter may move to such climax In
April and May through the regular
diplomatic channels as to call for some
action by Congress.
Door Is Not Closed.
While America has apparently turned
n deaf ear to pleas for postponement,
the door has not been closed to re-
vision, especially II world economic
conference or future developments open
the way for trading Of trade advan-
tages for debt reductions policy
championed by Mr.. Roosevelt in his
campaign speeches.
The President t-elect wriggled out OF
D delicate domestic political situation
in his visit here. He did not assume
responsibility for refusing to grant
postponement of the December Is pay
nients, leaving that to Mr.. Hoover and
Congress. He did not embarrasS Mr.
Hoover by deviating from the four
principles which have been cardinal
ideas in American foreign policy under
both Democratic and Republican ad-
miristrations since the war loans were
made. This means that Europe was
given to understand that debtors would
he treated individually and on capacity
70 pay and that the Lausanne agree
ment to forgive German reparations
mas no bearing aon the debts owed to
America. From diplomatic point OF
view 1t was important that the con-
ttnuity of American policy be fully un-
derstood abroad It saves Europe time
in avoiding the normal wait till March
4 to learn the foreign policy OF the
new administration.
Mr.. Roosevelt co-operated to the ex-
tent of agreeing with the President ON
every essential point except one; name
ly, the means OF carrying on negotia-
lions for revision. The President-elect
called this secondary. but 1t does spell
the doom of Mr.. Hoover's recommends
ton for q debt funding commission.
Since such a commission could probably
not have reported before March "A, 1t
will have little practical Importance.
Controversy Simplified.
The important point is that Mr..
Roosevelt did not refuse hearing to
foreign governments and limited that
Individual cases might differ and that
America would be glad 'at any time"
to get the facts, which means tomorrow
and not after Congress has debated
whether it will or viii not set up spe-
ciaI commission. To this extent the
whole debt controversy has been SIM
plified and Europe may be expected at
once by a public exchange Of notes to
appeal to the public opinion Of the
United States to re-examine the obli-
cations Also, both Mr.. Roosevelt and
Mr.. Hoover agreed that the advances
were actual loans" which was q petite
hint to France in particular that these
were not mere political debts or war
subsidies.
Mr.. Roosevelt has come and gone,
and while some of the Republicans were
disappointed that he did not agree on
all points with the Hoover program, the
fact remains that the President-elect
made pleasing impression, recognized
the gravity Of the debt problem and
helped to take it out of congressional
d hands and debate for the time being,
while more facts and discussion come
to light to enable Congress itself to
Justify change of viewpoint from rigid
insistence on payment in full to con-
cessions mutually advantageous to the
United States and the debtor countries
(copyright. 1922