Evening star., 1932-01-16
REED SEES. NEED
FOR DEBT REVISION
But Warns Europe to Avoid
Linking Them With
Reparations.

Senator David A. Reed, Republican,
Of Pennsylvania, said last night 1t was
"inconceivable that the United States
would not sympathetically consider a
proposal for temporary adjustment Of
Great Britain's war debt, based on her
temporary diminished capacity to pay"
Europe as whole, however, was re-
minded by the Pennsylvania Senator.
an administration spokesman, that
there Is no relation between war debts
to America and Germany's reparations.
Senator Reed issued formal state
ment In response to constant press re-
ports from Europe attempting to class
debts due to us with reparatiors." He
called attention that Americas loans
to the allies were made after the
armistice and represented money from
the people of the United States.
Regarded as Concession.
His willingness to consider a "tem-
porary" readjustment of the war debts
for certain nations" was a concession
on Reeds part. He previously has de-
clared against the proposal of President
Hoover to revive the War Debts Com
mission. But he insisted that each ma
ton be dealt with alone.
Significance was attached to the Reed
statement because of his closeneSs to
the administration and because of the
conferences now proceeding in Europe
looking to a readjustment Of the Ger
man war reparations.
lit is impossible for the United
States" he said, ito admit that If Ger
many is or may be unable to pay fur
ther reparations, this automatically
cancels the debts, since the debts have
ra1of{or1 m the reno rati0nS When
the debts were created, no reparations
existed. At the time of the funding
the amount Of the debts was estimated
on the normal capacity Of the various
nations to pay, irrespective Of repara-
tions.
Cites British As Example.
SIT is obvious that since that time
the worldwide economic crisis has in
certain nations deeply affected that ca
pacity and that certain nations may,
in consequence, have to request con-
sideration from the American Govern
ment as to their temporary capacity.
II have in mind, for example, the sit
uation of Great Britain at the present
time. Every one knows the difficulties
there in the very heavy taxation, and
knows that If the depreciation of the
pound continues 1t will probably greatly
affect the British capacity to make the
payments which will fall due next De-
cember. 1t is inconceivable that the
United States would not sympathetic
cally consider proposal for temporary
adjustment based on temporarily di-
minished capacity.
There should be no reputation Of
the principle that the debts are valid
and sacred obligations and that these
obligations are individual to each ma
tion, not collective to the debtors as
whole, or to be dealt with In that
fashion"
Wants to Remain Senator.
Reed also removed himself yesterday
from consideration as possible candi-
date for Ambassador to Great Britain.
He had been mentioned in this connec-
ton after the recent resignation Of
Ambassador Charles G. Dawes. The
Pennsylvania indicated he preferred to
remain as a Senator.
This statement was made after Henry
P. Fletcher, former diplomat and chair
man Of the Tariff Commission, frankly
asked the Pennsylvania congressional
delegation to urge his appointment as
Dawes successor