Evening star., 1932-07-19
European Debt Diplomacy
Riddled by American Public

With much uncertainty as to agree
ments made by European nations on
the debts TO the United States the
lenient attitude toward Germany at the
Lausanne Conference is applauded here.
1t is insisted, however, that the repair
ations reduction should have no effect
on the stand OF American diplomats.
who insist on the maintenance of Eu-
ropean obligations.
The New York Sun sees "a hopeful
scheme for passing the buck to the
United States" but advises that while
this Nation may be expected to give
sympathetic hearing to any reasonable
request, it has no intention of lifting
burdens from the taxpayers of debtor
nations simply that it may impose
Omaha World-Herald analyzeS the
problem with the statement: Literally
millions OF Americans are bowed down
under a burden of debts they are un-
able to pay. What of them? Shall
they be denied any measure of relief
while generous forgiveness Is extended
the nations of Europe? More than that.
shall European debts be forgiven only
to be piled upon the shoulders of
American taxpayers, who will have to
pay them if Europe doesn't? Obviously,
when it comes to another revision
downward of the war debts there is
going to be trouble. If the consent OF
the American people is to be won to II
there must precede it radical reduc-
ton OF Europes Wasteful expenditures
for future wars. And then. after that.
there must be clear and definite
showing of inability to pay even then,
coupled with plain evidence that a
scaling downward will be to our own
advantage as member of the family
Of nations that must rise or fall to-
gether."
1T the allies debts to the United
States" thinks the Spokane Spokes-
man. Review, were taken out of con-
sideration. as they must be taken out,
the French would not have given that
meager settlement consideration. Then
why was France won over to accept
ance? Manifestly with hints or secret
promises from Macdonald that British
diplomacy would next be turned upon
the United States for cancellation OF
the allies debts"
Congress and the American people"
advises the Philadelphia Evening Bull
letin, must be prepared to face. not
demand for cancellation, but in due
time a request for adjustments. When
! the request Is made it must be squarely
viewed in all its relations, and Ameri-
can policy formulated in national as
we'll as international interest. Nobody
is going to ask us to do more than ap-
ply the old, settled principle OF capacity
! to pay to the present position OF the
debtor countries" The Indianapolis
| News believes that "a fair conclusion
is that what was done in reparations is
final" while the Boston Transcript de-
/ clares: 1T is clear that Europe awaits
some sort of proposal for Strengthening
out the trouble Americans are in
clined to ask, What sort Of proposal
do they expect us to make? If the
debtor powers Of Europe are in such
situation that payment of their debts.
or of interest on them, has become an
impossibility, whatever proposal may be
/ due in the case. should, 1t would SEEM in
the analogy Of private affairs, come
from them. If they should make one.
1t would undoubtedly be considered by
our Government in friendly spirit.
Mr.. Macdonald also says that mo one
has a right to blame America for TAX
ing up the attitude she has done We
do not see how any one could reason
| ably blame us for that. We have not
dunned our debtors. On the contrary,