Evening star., 1932-08-04
u. 5. POLICY STANDS
DESPITE DEBT PLEA
Will Enter World Economic
ParIey With Issue Barred
From Agenda.
Nv the Associated Press.

BY the Associated Press
Despite Senator Borah's contentious
that a world economic conference
which ignores debts and reparations
will be a failure, the American Gov
ernment stuck to another view and
went ahead today planning participa-
ton in the meeting it has agreed to
join.
The State Department remained
quiet about the last Borah speech, ap-
parently assuming its decision to meet
without discussing specific tariffs, rep
arations and debts was sufficient an
sWer.
John F. Costello. Democratic Ma
tional committeeman for the District
of Columbia. today called the Borah
speech remarkable" and said. Il
haven't any doubt in my mind that
everybody in the United States will
agree with him, regardless of party"
New Road to Arms Cut.
There was a frequently expressed
hope eusewhere that the disarmament
the Idaho Senator and Present Hoo
yer both want can be obtained in an
other way. Recent arms conferences,
it is said. have not shown great
progress. But should the leading pow
ers get together at an economic meet
ing, better feeling would result. That
would bring European disarmament
agreements, it is hoped, and find the
United States ready to discuss war
debts.
The administration hope that the eco
nomic conference viii prove to be one
of the steps leading to reduction OF
armaments is cne of the points being
considered at the State Department and
White House. Thought is also being
given there to the qualifications Of a
group of men from which will be chosen
the three American members Of the
separate committees that will plan the
conference and survey the economic and
financial phases CT the problem.
The announcement of the personnel
of the group will be withheld until the
time and place have been fixed for the
preliminary meetings.
Silver Expert Wanted.
Already there is agitation for the ap-
pointment of a silver expert. Senator
Smcot of Utah called at the White
House yesterday and after talking with
the President said he had urged that
Mont Ferry CT Salt Lake City be named
as one of the experts.
Il believe something will come out Of
stabilize silver" Smoot said, and be-
lieve nothing could be more important
to the financial situation than such a
stabilization."
While silver undoubtedly will figure
largely in the discussions, they will be
broad enough to cover virtually the
whole economic field. Specific tariffs
will be barred along with international
debts.
Issues to Be Divided
The conference itself will be divided
into two separate phases-a study Of
international finance and Of the eco
nornic questions that are now to the
fore in every country Of the world.
The first will include monetary and
credit policies. exchange difficulties,
price levels and the movement of capi-
tai. The second will give particular
attention TO tariff policies, trade pro-
hibitions, restrictions, quotas and other
barriers.
This countly's representatives, it is
believed, will tackle the problem in the
belief that the trade restrictions, quoCas
and determinations that exist IN Vafl-
Gus parts of the world are constant
irritent that breeds fear and distrust
among the peoples Of the different ma
tions
Persons familiar with the administra-
tons outlook say that If these reStrlc-
tive barriers can be broken down a long
step can be taken toward creating a
general good will among nations.
Better Chance to Disarm.
Once this has been accomplished, they
believe that the disarmament problem
can be reopened with good prospect
for success. 1t is felt that a free flow Of
commerce and the existence of a feel
ing of trust and confidence among the
different peoples of the world would
dissipate the fear of wars and put them
in frame OF mind to approach con-
fidently the disarmament question.
Estimates have been made that If the
world armaments were reduced by one
third, as proposed by President Hoover,
a minimum saving Of $2,000,000, 900
would come to the taxpayers Of this
country in 10 years. For the whole
world the minimum saving was estt-
mated at $4,000. 900 900.
So. many students of diplomacy at
Washington believe, economics may
prove the back door to disarmament.