Evening star., 1932-05-10
HALT DEBT PLANS
IN FRENCH VOTE
Lausanne Conference win
Mark Time on Repara-
tions Problem.
BY CONsTATINE BROWN.

The victory Of the parties Of the Left
In France has been received with satis-
faction In Official circles in Washington.
While 1t Is realized that Herriots
coming to ofice will not change materi-
ally Frances foreign policy, 1t is be-
heved that the leader Of the Socialists
viii adopt q more conciliatory policy
regarding the question of reparations
and disarmament. He is likely TO
accept certain compromises which
Tardieu refused to even consider.
Since last Sunday a week, when it be.
came obvious that Herriot and his fol-
lowers would have a sweeping victory
over the parties Of the Right, decks
have been cleared for action by most
European statesmen. The chief worry
OF Europe today is not the question Of
reduction Of ornaments, but the ques-
ton Of reparations, which was sched-
uled to come up at Lausanne on the
10th Of June. As soon as the Herriot
victory appeared certain, European
statesmen are reported TO have agreed
TO postpone, II necessary, the Lausanne
meeting until the American Congress
has adjourned.
Favor Waiting Policy
A plan is being devised now whereby
the European nations win avoid any
final decisions at Lausanne IN an ef-
fort to prolong the present moratorium
in order to give Germany a breathing
spell and see how the world economic
situation will develop during the next
few years. It Is hoped that during this
time American public opinion can be
sufticiently educated to accept inpor-
tant cuts In the allied debts.
Macdonald Is reported to have been
in favor Of drastic cut in the Ger
man reparations right away. As soon
as that cut had been agreed upon he
intended to present the United States
with the following plan: I'VE have
given up a substantial part Of our reve-
nue. by reducing the German debt; on
the basis of that reduction we offer
the United States new settlement of
Europe's debts. Accept 1t. II you don't
We shall be compelled to default and
that win be detrimental to the whole
world"
1t is reported that Macdonald In
tended to make this proposition after
the American presidential elections.
Plan Now Unnecessary.
With the probable change in the
French administration, 1t Is believed
that such drastic step win no longer
be necessary. The European statesmen
0AC AbAAy 4WhkC Va t1AC t0Cb bA4ttt tklG
United States is willing to consider O
reduction Of the debts If Europe can
put It's house IN order That is to say,
Europe can reach an agreement re-
garding German reparations; If It can
solve some OF the major political prob
lebs which make, to o certain extent,
the solution of the reparation problem
impossible. and as q consequence Of
both, can agree to some substantial cuts
In the expenses for national defense.
Such agreements appeared out Of the
question as long as the parties Of the
Right, with Mr.. Tardieu as their spokeS-
man. controlled the French Parliament.
Herriotis victory leads many Of the
European and American observers TO
believe that things will change In
France. Not that Herriot viii abandon
frances claim on reparations or win
agree to reduction Of Frances mill
tary forces without some definite PROM
ise OF Frances security by Great Brit
ain and the United States; but he win
be more willing TO reach o compromise
which might pave the way for an I'M
derstanding between the European
countries which would make the United
States less afraid OF trouble in Europe.
Distrusts America
Herriot is emotional and a convinced
pacifist. While distrusting America, he
has full confidence IN Great Britain In
general and in his friend Macdonald In
particular. It is believed that much can
be accomplished for the peace Of the
world by these two men alone
Others, however. are less optimistic.
They say that Herriot of today is an
entirely different man from Herriot
who was prime minister in 1924. He
has learned his lesson by the crushing
defeat he had suffered during his period
in office and his pride has suffered
greatly during the last few years, when
most Frenchmen accused him of having
brought France to the brink of ruin.
Must Conciliate Bankers.
Herriot Is believed consequently to
plan his next government In collabora-
ton with the parties Of the Center,
possibly with the support Of Tardieu
and Laval instead Of that of Leon Blum,
the leader of the Socialists of the Left.
This assumption Is based not only on
that fact that Herriot understands
better today the point Of view Of the
man in the street In France, who con-
tinues to be worried about a possible
new German aggression, but also be-
cause he must maintain the confidence
Of the big French industrialists and
bankers. II is they who ruined his
administration In 1924 because they had
no confidence IN his radical policies.
Should Herriot, 1t is said, lean too much
toward the Left, a repetition of the
1924 situation Is not unlikely In these
days Of extreme sensitive economic con-
ditions. lack of confidence on the part
of the monied interests can quickly
bring about an economic catastrophe.
Herrlot mas experienced this already,
and it is most unlikely that he viii
try 1t again.
Herriot likes to be described as "the
great European" His sympathies for
a united Europe are more marked than
those Of any other living French states
man. It Is fully believed that the
future prime minister Of France will
do his utmost to improve the situation
in Europe and will make as many con-
cessions as he can without running the
risk Of antagonizing the country and
the new Chamber.