Evening star., 1932-11-26
u. s. DEBTS REPLIES
SHOW DIFFERENCES
Trade Payments Suggested
to France, but Not to
Great Britain.
Continued From First Page.)

CONTINUED From First Page.)
eventual revision of the debt question
the acceptance of other compenSations
for the sums due to France. In some
other form than gold.
'"The attitude of the President" says
the note to France, lis that for any
suggested study of ntergovernmental
financial obligations as now existing,
some such agency congressional COM
mission) as I have referred to, should
be created to consider this question in
dividually with each government as
heretofore. AS he has several times said
publicly, he also believes that some
basis might be found for bringing to the
American people some adequate COM
pensation in forms other than cash pay
ment. ."
This suggestion of liqu1Aating the
debts by other means than cash was
not made to the British government.
otherwise the notes are identical.
While firmly rejecting the suggestion
of the British, French and Belgian gov
ernments regarding the postponement
of the December instalments and refer
ring to the Congress OF the United
states the question Of revision OF the
war debts which these governments
base on the present worldwide depres-
sion, Mr.. Stimson is automatically
sympathetic with the foreign govern
ments.
Appreciates Situation.
THE Importance OF the proposal con-
tanned In the note of November III, ne
states. land the seriousness OF the SIT
uation upon which it is predicated
is fully appreciated. In matter OF Sucn
Importance there. must be allowed no
opportunity for misunderstanding or
failure to reach conclusions satisfactory
to both governments and peoples.
Then, he proceeds to explain TO the
governments that mot only is there re,
served to the Congress OF the unlteo
states the ultimate decision in respect
to the funding, refunding or amend
ing these intergovernmental obligations
under consideration, but the Congress
in the past has itself provided the ma
chinery in the shape OF the World war
Foreign Debt Commission for the m
vestieation of the facts and Tor the
making of recommendations upon winch
such action might be taken.
After having explained the consti-
tutional machinery for the revision oil
debts. the Secretary of State proceeds
to tell the foreign governments that
their request goes far beyond any
thing contemplated or proposed at any
time either by President Hoover or py
this Government, and that even the
suggestion quoted in your note was
not adopted by the Congress OF the
United States"
No Parallel Found.
In the note addressed to the French
government Mr.. Stimson makes COM
orehensiye survey of the history OF the
war debts since they were contracted IL
the DAYS of President Wilson, ana
proves conclusively that there can De
no parallel drawn between war deots
and reparations.
mot only did this Government not
receive any compensation at the
close of the war, but from the TACT
that 1t owed no obligations OF any
kind to others, treatment Of the debts
and reparations as though they were
connected could only operate to the dis
advantage of the United States
And to make matters still more clear
the Secretary of State adds that the
debts owed to the United States thus
naturally fell into the category OF or
dinary debts obligations between in
diyidual nations and were treated as
SUCH
Mr.. Stimson makes it plain to the
interested governments that the United
States fully appreciates the dlncultles
the foreign nations are encounterlng In
discharging their obligations on account
of the Worldwide depression. and the
concurrent fall Of prices, which nave
Increased tie weight of debts in many
parts of the world. He also apprecl-
ates the Importance Of the steps taken
at Lausanne in respect to the repara-
tions and also the relations between
all these factors which may bear. upon
the process Of recovery. But he ADDS
sit must bs rssnAnhered that these in
cidents of the depression have also
fallen with ereat weight upon the
American people, and the effects upon
them directly a. taxpayers or otner-
wise of any modification OF an agree
ment with respect to debts due to this
country cannot be disregarded.
Doesn't Close Door.
But the Secretary of State does not
completely slam the door in the face
of the debtor nations in regard to a
possible revision. He says that the
President "is prepared to recommend
to Congress that 1t constitute an agency
| to examine the whole subject individu-
ally with each nation" This last state
ment. it is believed, will encourage the
debtor nations to present their lnol-
vidual cases, If they chose to do SO,
| to the Congress of the United States
Regarding the request for postpone
ment of the installments due on De-
cembe- Is, the Secretary of State holds
no hope and gives no encouragement
| to the debtor countries. Neither has
| the President the power to grant such
an extension nor have the interested
powers presented their case in man
ner to justify such postponement.
| "As to the postponement
which is one of the objectives OF you"
note, no authority lies within the power
of the Executive to grant such an ex-
| tension, and no facts have been placed
! in our possession which could be pre-
sented to the Congress for favorable
! consideration" Mr.. Stimson said.
| Mr.. StimSon ended his notes with a
| friendly advice to the powers that II
they want the Congress of the United
| States to reconsider the debt question
! they should pay the amounts due on
| time. He said: Such Importance IS
attached to the maintenance Of the
original agreements in force by the pay
ment on December Is as to far out
weigh any reason now apparent for Its
| suspension, and by such payments the
prospects of a satisfactory approach
| to the whole question, in my opinion,
would be greatly increased"
Negative Replies Expected.