The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-06-14
POWERS FEAR
DEBT FARLEY
DUE TO FAIL
HopelesSIy at Odds as
Lausanne Session
Draws Near.
BY WILLIAM PHILIP SIMMS
scripps-Howard Foreign Editor

WASHINGTON, June 1.-THE
eve OF the fateful reparations and
war debts conference at Lausanne
next Thursday finds the interested
powers apparently hopelessly at
skies and SeYens
1. Germany owes the allies, under
the Young plan, S27,641, 900 900,
principal and interest over period
Of about so years, or an average of
approximately s46O,OOO,O0 a year.
This, she warns, she can not and
will not pay.
2. The allies owe the United
States on war debts, $22, 183, 900, 900,
principal and interest over SINH
lar period, or an average of nearly
S370,000,000 year. This, they de-
clare in turn, they can not and will
not pay unless Germany pays them.
3. To arrive at some understand
ing with regard to this impasse,
Britain, France and the other allies
insist 1t is necessary for the United
States to meet with them at
Lausanne. And this the United
States categorically declines to do,
claiming it has nothing whatever
to do with reparations.
Britain for Cancellation
SO much for the fundamental diff
ficulties underlying the parley. On
top Of these, however, there is a
perfect maze of other differences
between the allies themselves and
between them and Germany.
For example:
l.. Great Britain advocates cam
collation. of both reparations and
war debts, in toto. If this were done
she would come out about even.
Q. France is opposed to cancella-
ton. True. she will agree to can
eel that part Of German reparationS
which she, in turn, must pay over
to the United States and Britain on
war debts, If her creditors so desire,
but she insists upon payment of
that portion earmarked for war
damages or reconstruction.
3. Germany frankly demands abo-
lition of the whole Young plan,
lock, stock and barrel, and threat
ems, as the red-hot tide of Hitlerism
and kaiserism mounts, to abolish it
herself and face the allies with
fait accompli.
Failure, therefore, threatens the
parley from the very start The al
tentative, as viewed on both sides
of the Atlantic, is to prevent the
Germans from spilling the fat into
the fire, extend the existing mora
torium and leave the young plan |
technically intact for the time being. |
Spar for Time
This, it is argued, would give time
for further examination of the
whole problem. The presidential
campaign could proceed in the
United States without war debts be-
coming an issue, and Germany, on
her part, could hold her pivotal !
reichstag elections, scheduled for
July 81, without blow up due to
any decisions at Lausanne.
Furthermore, during the breath
ing-Spell thus provided, it is pointed
out, the proposed world economic
conference could be held at London
or elsewhere with the United States |
sitting in. And there, properly |
camouflaged to keep them from
jarring too severely on American
political sensibilities, war debts and |
separations could be dealt with as
part and parcel of the ills that all
the world.
Officially Washington has now
definitely washed its hands of Lau-
same. The White House, the state
and treasury departments continue
to insist that war debts are uncon-
nected with reparations, and Secre-
tary Stimson has repeated the
phrase to various diplomats here in
the last few days.
Reduction Is Opposed
And congress is still on record
against either reduction or cancel
lation of the existing Indebtedness.
OF the record, however, leaders
both in and out of the administra-
ton, confess they do not entertain
the slightest hope of collecting in
full, under existing conditions and
arrangements, and admit new deal
all the way round is inevitable.
Thus a breathing spell would not be
entirely welcome.
For it is fully realized that any
drastic decision at Lausanne at this
time could hardly fail to cost the
American people billions.