Evening star., 1932-12-02
Text of French Reply to U. S. Note
Offers Reasons for New Extension

near future of world prosperity in which
the American Nation is so profoundly
interested.
Cor1munique Quoted.
"The duty Of statesmen" the Wash
ington ccmmunique of October 10 indi-
Gated, is not to overlook any means of
practical co-opsration for the common
good. This principle is particularly
importaA- at q time when the world
looks for leadership for relief from g
depression which reaches countless
homes"
The economic depression which in
Spired the proposal by the President OF
the United States and his appeal for
collaboration among the peoples has
grown worse since the Spring of 1881.
Everywhere misery and unemployment
are increasing. This depression can
only grow worse if payment of inter-
governmental debts must be resumed
before the coming of general arrange
ment is provided for.
The French government is acquainted
With the formal reservations made at
the time of ratification of the Hoover
moratorium by the American Congress,
whose prerogatiVeS it has no intention
of bringing into this discussion.
But it should be recalled that the
French Parliament, on its part, has
conditioned its approval on its own in
depreciation of the moratorium pro-
posed by President Hoover.
1t must also be recalled that the
committee Of experts which met at
Basel in December, 1881, as result of
the Washington interview, and on which
sat an eminent American personality,
did not limit its work to recognizing
the monentary impossibility of Ger
manyS meeting her reparations obliga-
tions.
It unanimously condemned in formal
manner as being especially pernicious
to restoration of world economy the
transfers OF funds without a counter
part, which the payment of war debts
makes necessary.
Conclusion of Report.
TT at report concluded as follows:
In the first place, all transfers from
one country to another on a scale so
large as to upset the balance of pay
ment can only accentuate the present
chaos. 1t also should be borne in mind
that the release of a debtor country
from the burden of payment which it
is unable to bear may merely have the
effect of transferring that burden to a
creditor country which in its character
as debtor it may be unable to bear.
Again, an adjustment of all inter-
governmental debts to the existing
troubled situation of the world-an ad-
justment which should take place with
out delay if new disasters are to be
avoided-is the only lasting step capable
of re-establishing a confidence which
is the very condition of economic
stability and real peace"
Guided by these general conSidera-
tions, the French government accepted
the Lausanne accord on condition that
that they would receive the approval of
the French Parliament.
Despite a budget deficit of nearly
$500,000,000, the balancing of which
already has neceSsitated and will neces-
state in the future very stringent meas
uses, France will thus have voluntarily
abandoned an annual revenue, while
paying her war debt, in the neighbor-
hood of $85,000,000, this in the interest
Of world economic restoration.
She accepted this heavy sacrifice
under the conviction that the payments
provided for under the existing agree
mentS could not be made without caUs-
ing profound economic and financial
perturbations.
Situation misunderstood"
Her situation with respect to this
has often been misunderstood and JUS
titles detailed explanation.
The flow of gold toward France in
the last few years has been caused or
made inevitable essentially because Of
conditions existing in the world. This
gold does not belong to the French