Evening star., 1932-12-21
FRENCH CONSIDER
LOAN To AUSTRIA
WHILE j. s. WATTS
$9,750,00O Is Due Under
League of Nations
Relief Plan.
vienna NOT HOPEFUL
OF RECEIVING AID FUND
Paul-Boncour Cabinet Expected to
Recommend Neutral Farticipa-
tion in Debt Issue.
BY the Associated Press.

BY the Associated Press.
PARIS, December 2l-Another phase
of Frances financial dilemma pro-
posed loan to Austria-pressed forward
today for decision while responsible
leaders hoped for early settlement OF
the American debt problem.
The two problems were linked by Dep
uties who asked how France could
make the loan to Austria when it re-
fused to pay a sum only twice as great
to the United States last week.
The League Of Nations approved
S43, 100000 loan to Austria last July, at
the Lausanne Conference, to be raised
by member nations. Frances share In
this loan, intended to save Austria from
a perilous financial situation, was 25o,-
100000 francs, or about s9,750,000.
Question is Raised.
Within the next 10 days a decision is
to be reached by the French Govern
ment on whether the loan should be
made. Deputies who favored making
the interest payment of more than $l9,-
900 900 to the United States last Thurs
day, raised the question of grounds for
making the Austrian loan.
"a strangely contrasting view was
taken in Vienna before France de-
faulted On the due date fer the Ameri-
can debt 1t was believed that if France
paid the United States, the chance OF
its making the loan would be practi-
cany wiped out. This view also applied
to England, which was to share in the
Austrian loan, and which paid It's Amer
Behhd both problems is the fact that
France is financially able to make either
the debt payment or the loan. The
French viewpoint was, however, that
the Lausanne agreement reducing Ger
man reparations was approved by the
United States with virtual promise of
. similar reduction to its debtors.
New Cabinet to Announce Stand.
Meanwhile, the French cabinet
under Premier Paul -Boncour, prepared
to make its initial bow to the Chamber
of Deputies tomorrow with declaration
of policy on debts and other French
problems 1t will ask for vote OF con-
cabinet, now just three days old, Will
remain in power.
While Premier Paul-Boncour has
promised action on the debts in
friendly accord with desires in the
United States reliable sources were Ger
tain he would not seek to alter the
chambers decision to postpone the De-
cember payment pending general and
necessary negotiations"
A high official predicted it probably
would be two months before the cham
;tr A O
member said he was convinced the
December payment would be made, but
th9t it was "a question of time"
The view that the next move is up
to France has turned attention to the
cabinet stand, which will be made public
tomorrow.
May Ask Commission.
Government officials declared Presl-
dent Hoover's view that the debt ques-
ton must be treated from a broad
standpoint of economics was welcomed
in France. But there was a difference
seen in the form Of agency which should
consider the problem.
French quarters expected the Paul
Boncour cabinet to recommend neutral
participation or an international COM
mission, while President Hoover's views
were interpreted DIS HlSloCiiiS oAA ~
and separate dealings with each debtor
nation.
Herriot Stands Firm.
Former Premier Herriot, speaking to-
day to the Anglo-American Press AS
sociation, said, anent his war debt
stand:
Il am not to be congratulated OF
thanked I did my duty"
He said he cared little for his per-
sonal fall.
"I am attached to the old doctrine OF
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