Evening star., 1933-09-28
DEBTS COLLECTION
GIVEN TO TREASURY
IN SURPRISE MOVE
Mild Sensation in Diplomatic
Circles Created as Hull
Steps Aside.
DISCUSSIONS NOW PUT
ON FLAT DOLLAR BASIS
Acheson to Lead Parleys-Debtors
Denied Right to Drag Up
Old Cut Plea.
BY CONSTANTINE BROWN.


A mild sensation was created today
in Washington diplomatic circles by
the announcement of Secretary Of State
Hull that Forthcoming debt negotiations
will be conducted exclusively by the
Treasury Department.
Secretary Hull announced ofhclally
that by unanimous consent the CONVEX
sations between representatives OF the
debtor countries and the American
Government will be in charge OF the
Undersecretary of the Treasury, Dean
Acheson, assisted by Frederick LiVesey,
assistant economic adviser in the State
Department, who has been lent by
that department to the Treasury for
the duration of these negotiations.
This is departure from the policy
of the previous administration. which
intrusted all the debt discussions to
the State Department. In some quar-
ters il is considered move on the
mart of President Roosevelt to avoid
revival by the debtor nations OF the
controversy as to what promises tne
American Government had gwen at
Lausanne in order to induce the former
allies to reduce the German repara-
tions by 80 per cent.
Transfer Made in 1880.
It is true that originally, when the
first debt settlements were concluded
in 1928, the Treasury had complete
charge of these negotiations. But IN
the last three years, when debts, dis
armament and other political consider
ations became interlinked, their nego-
tiations had been transferred to the
State Department..
In the notes addressed to the Amer
ican Government by the French and
British on December is, 1882, both these
governments stated emphatically they
considered a substantial reduction OF
their war debts to the United States
necessary, because American representa-
tives had promised them a remission
equivalent to the reduction OF the Ger
man reparationS.
In making token payment" last
June, the British decided to pay only
10 per cent of the installment due, In
order to mark the point that they con-
sidered a 80 per cent reduction as the
only equitable solution OF the debt ques-
ton.
The administration 1Ouno ltSelI con-
fronted every time the question of the
war debts came up with the same state
ment from the debtor nations: We
have reduced the German reparations
because you had promised us similar
treatment regarding our debts
Attitude Barred Progress.
No progress was conceivable under
these circumstances In order to avoid
continuance of this state of affairs, the
President, it is said, has decided to re-
turn to the 1928 procedure, when the
Treasury was in charge OF these ne
gotiations. The treasury has nothing
to do with foreign affairs and diplo-
matte compromises. 1t deals only IN
dollars and cents. and it is in this form
that the administration thinks the
problem should be considered.
The Treasury Department can ascer-
tain far better than the State Depart.
ment what is the capacity to pay OF
each individual nation. Moreover, II Is
free from considerations which are un-
avoidable when the State Department Is
discussing a situation. Naturally, Dotn
President Roosevelt and Secretary Huh
will be at hand to advise Mr.. Acheson
whenever the necessity arises, but the
basic negotiations will be conducted IN
a matter-of-fact manner by the officials
of the Treasury.