Evening star., 1932-11-26

affect its result. Not only is there re-
| served to the Congress of the United
States the ultimate decision In respect
to the funding. refunding or amendment
| Of these intergovernmental obligations
under consideration but the Congress in
| the past has itself provided the machin-
cry in the shape of the World War For
| eign Debt Commission for the inveSti-
! CATION of the facts and for making
| recommendations upon which such ac-
| ton might be taken. The Executive
might recommend. but the facts and
| evidence were submitted to and the
| decision made by the Congress, acting
| through this machinery.
Reparations Up to Europe.
"You will also appreciate that your
present suggestion of general review
! goes far beyond anything contemplated
| or proposed at any time in the past,
either by President Hoover or by this
| Government, and that even the sugges-
! tion quoted in your note was not
adopted by the Congress OF the United
! States.
In view of these facts and in the
light of the historic position OF the
United States that reparations are
solely an European question in which
the United States are not involved, am
sure that no inference can be intended
that the settlement of German repara-
tionS at Lausanne was made in relf-
ance upon any commitments given by
this Government.
l. II appreciate the Importance OF the
step mentioned in your note which has
been taken by the governments at Lau-
same in respect to the reparations due
them from Germany and the possible
effect upon those creditor nations of
the loss of that source of income. I am
not oblivious to the fact that the world
wide depression and the concurrent fall
of prices has increased the weight OF
debts in many parts OF the world: nor
to the fact that the decrease in inter-
national trade has increased the diff
cuities OF obtaining foreign exchange
I also recognize the relation which
these facts may bear to the process OF
recovery On the other hand, 1t must
be remembered that these incidents OF
the depression have also fallen with
great weight upon the American people,
and the effects upon them directly as
taxpayers or otherwise OF any modlf1-
cation of an agreement with respect to
debts Que to this country cannot be
disregarded. I assume that 1t was Tor
IQG Ol utllDSldiCIy No1
fully giving due weight to such conflict
ing elements in the world situation, diff
fering as they would in various coun-
tries, that this Government adopted the
system which I have described. I con-
fess that I cannot see any presentation
in your note which would be likely to
induce the Congress of the United
States to act upon the question any
differently now from the manner and
the principles upon which 1t has acted
in the past.
No Power to Delay.
"The attitude of the President, there
fore, is that for any suggested study of
intergovernmental financial obligations
as now existing some such agency as l
have referred to should be created to
consider this question individually with
each government, as heretofore. The
President Is prepared to recommend to
Congress that it constitute an agency
to examine the whole subject.
"AS to the suspension of the install
ment of the British debt due on De-
cember IS, which is one of the objec-
tives in your note, no authority lies
within the Executive to grant such an
extension and no facts have been placed
in our possession which could be pre-
sented to the Congress for favorable
consideration.
such importance is attached by our
Government and people to the mainte-
| nance of the original agreements in
force by the payment on December Is
| as to far outweigh any reasons now
apparent for its SuSpe 1sion, and by such
payments the prospects Of a satisfac-
| tory approach to the whole question, in
my opinion, would be greatly increased.
| Accept, excellency, the renewed as
surances of my highest consideration.
HENRY L. STIMSON."
Text Of Reply Sent
| To French Ambassador.
The following is the text of the war
debt note to France, written to Ambas-
sador Paul Claudel by Secretary of State
Stimson.
II fully appreciate the importance of
the situation presented by the request
| for an examination of the problem of
the intergovernmental debts contained
in the memorandum of the French
government. dated November 10. 1882.
The fact that such a suggestion Is made
by your government in itself makes this
a matter meriting the most careful con-
sideration. In a matter of such impor-
tance there must be allowed no oppor-
tunity for misunderstanding or failure
to reach conclusions satisfactory to both
governments and peoples.
Limitations Recalled.
In this connection you will appre-
ciate that your present suggestion goes
far beyond anything contemplated or
proposed at any time in the past, either
by President Hoover or by this Govern
ment. You will also permit me to re-
call very briefly some of the essential
conditions and limitations which would
control on the part of this Government
any new study of the debt question, and
might affect its results. Not only is
there reserved to the Congress of the
| United States the ultimate decision in
respect TO the funding, refunoing or
amendment of these eintergovernmental
obligations under consideration, but
from the beginning the Congress has
itself provided in the past the machin-
cry in the shape of the World War For
eign Debt Commission for the investi-
cation of the facts and for making
recommendations upon which such ac-
ticn might be taken. The Executive
might recommend but the facts and
evidence were submitted to and the
decision made by the Congress, acting
through this machinery.
Separated From Reparations.
Furthermore, from the time Of then
creation, under President Wilson. this
Government has uniformly insisted that
in its handling of these obligations run
ming to itself they must be treated a.
entirely separate from reparation claim.