Imperial Valley press., 1932-07-09
INSIST ON
PAYMENT
OF DEBTS
United States Not Intend
ing To Agree Upon
Cancellation.
TOTAL II BILLION
Americas Attitude Gov
erned By Belief People
Want Collection.
By JOSEPH II. BAIRD,
United Press Staff Correspondent

United Press Staff Correspondent
WASHINGTON, July 9. The
Lausanne reparations agreement
brings forward the possibility of
temporary easing of Europe's
OOO,00O,O00 war debt TO the
United States, but President Hoover
and congress remain opposed to any
cancellation or permanent reduc-
ton.
With seeming reluctance, the
state department said that If
Americas debtors asked that their
burden be lightened temporarily,
the United States would discuss
the matter. Officials were hope
full that these conversations might
be postponed until next fall. That
is legally possible, for the next
debt payments are not due until
December Is.
The Hoover-Laval communique,
issued here last October at the time
of the French premier's visit, was
officially interpreted then to mean
1 that when the former allies had
settled the German reparations
problem, the United States would
talk with them singly about their
war debts.
This the state department is
ready to do, SO it said. But getting
down to basic facts, officials
doubted that any agreement could
be concluded before the presidential
elections. The administration is
anxious to keep war debts out CT
domestic politics.
The likelihood OF some tempo
rary adjustments" in allied debts
was foreseen by President Hoover
as long ago as last December. At
that time he asked congress to re-
establish the world war debts fund
/, ing commission to consider debt
adjustments. Congress not only
refused to do this, but in approving
the Hoover moratorium officially
put itself on record as opposed to
both cancellation and reduction. 1t
did not forbid further mora
torium. Most congressman in
commenting on the Lausanne
agreement again opposed any debt
cancellation.
The President himself is opposed
to cancellation or reduction. He
feels that as long as European
countries spend hundreds of mil
lions of dollars on ornaments they
can pay their debts.
Furthermore, the administration
) has been convinced that American
public opinion is opposed to seal
ing down the war debts.
Believes People Opposed
Thus not only the President and
congress, but, if the administration
is correct, the American people
will receive coldly any European
proposal for permanent reduc-
ton of defts. What Hoover had
in mind, however, when he wrote
his message to congress last De-
cember and when he issued his
!. joint statement with Laval, was
the possibility of temporary re-
Splte IO UIlc lIlui6ciiO iideioiAo ofSi
the period of the depression.
To accomplish that end, when
and if relief is asked by the
European debtors, Hoover might
do one of these things:
l. Ask congress to extend the
moratorium on. all or part of the
debts, using his own Judgment as
to what nations need relief.
2. Again ask congress to set up
the debt funding commission to
determine for itself what relief,
if any, should be given.
The "yardstick" of capacity to
pay would determine the measure
of relief needed.
The present total of the war
debts owed the United States is
around 0O0,OOO,OO0. England
owes about $4,000, 100000, France
about 100000, Italy about
$l.OOO,O0O,O0 The other $2,000,-
100000 is owed in comparatively
small amounts by Finland, Hun
gary, Lithuania, Poland, Belgium
Latvia. Czecho-Slovakia, Estonia
Roumania and Greece.