Evening star., 1932-07-10
.UNEAS|NESS MARKS.
WAR DEBTS ISSUE.
Diplomatic Circles Worried as
Senate Opposition Is
ForeSeen.
BY CONSTANTINE BROWN.

n tSA4lOb44b Va h4A1DoAAAN%'o "SNN
noticeable yesterday afternoon in diplo-
matte quarters in Washington following
the official announcement of the State
Department that on the question OF
debts owing to the United States by
European governments there is no
change in the attitude of the American
Government which was clearly ex-
pressed in the Presidents statement
concerning the proposed moratorium on
| intergovernmental debts on June 20,
1881.
High hopes had been raised yester-
day at Lausanne among the principal
+, European leaders by a dispatch from
! Washington quoting a high official OF
the State Department as having said
that now that the reparation question
is out of the way the road is open for
! the United States to consider the re-
vision of the war debts. This state
ment had been made, but that official
merely meant that he fully expected the
debtor countries to approach the United
! States with the view Of obtaining a
reduction Of their debts on the ground
| that Europe had drastically reduced
the German reparations.
Misconceptions Gone.
The official statement given out yes
teIday by the State Department has
now dispelled any misconception that
had been created by the optimistic
reports cabled ON Friday afternoon from
Washington to Paris and to Lausanne
It is authoritatively stated that the
position of the United States Is the
same as 1t was last year after the Hoo
yer intergovernn1ental debt holiday
That is to say, the administration Is
prepared to consider any individual re-
quest for revision of debts on the
capacity to pay of every individual
country, but the final decision continues
| TO remain with the Senate, which
| hitherto has rejected the Presidents S
request to re-establish a commission
to investigate again the international
debts.
The mood of the Senate, ascertained
few days ago as about the same as
| during the last few years, is: II the Eu-
ropean nations want the United States
/ to reduce their debts they must show
more willingness than heretofore to re-
duce substantially their armed forces.
Senator Borah, chairman Of the Foreign
Relations Committee, has repeatedly
stated that he would be the first man 70
advocate a drastic cut in the foreign
debts If the European nations agreed
to reduce substantially their armies and
| their navies. AS long as this does not
happen he and the majority of the
Senators, regardless Of political parties,
would not consent to any reduction OF
/ the allied debts to the United States.
Herriot is Admired.
In official quarters in Washington
| Premier Herriot's courageous action oil
wiping of the German reparations is
regarded with admiration. Only prac-
tical idealist like the French premier
could have taken such decision. But
/ it is unfortunate that Herriots position
| is none too safe in France today. His
! finance bill was rejected a few days age
! by the Financial Committee Of the
/ French Chamber and amongst those
who voted against it were men like Mr.
Lamoureax, one of the most faithful
| collaborators Of the premier. It is moi
impossible that when that bill will bt
discussed again in the French chamber
and the prime minister will be COM
pelled to inform his countrymen thai
the item German reparations" must bf
taken out of the budget, while the item
payments to the United States" mus
remain. the Herriot cabinet may have
to resign. II must be remembered tha
the LuSanne agreement does not be-
come effective until ratified by the
parliaments of all the interested coun
tries. In the meanwhile 1t Is probable
that all the debtor nations will begiI
10 make overtures TO the United State
regarding a substantial slash in the wa
debts
The opinion of an overwhelming mum
Der Of Senators is that vague promise