Evening star., 1933-06-05
DEBTOR COUNTRIES
AWAIT i. S. ACTION
Believe Roosevelt Should Ini.
tiate Negotiations on June
IS Payment.
BY CONSTANTINE BROWN.

The representatives of the debtor ma
tions are awaiting anxiously either for
call from the State Department tc
begin discussions of the debts due or
June Is or for instructions from theiI
governments to initiate such negotia-
tions.
They all hope that between now and
June is President Roosevelt will have
found some way to prevent wholesale
default OF all the debtor nations.
What the President may do nobody
seems to know, but the general feeling
in diplomatic quarters is that he may
be willing, after Congress adjourns, to
accept small good will'' payment from
the debtor countries and agree to post
pone the balance until thorough re-
vision Of the debt question can be made.
For the time being the diplomats are
watching with interest the converse
tions going on now between London and
depends the settlement of the entire
debt question.
British to Pay Something.
The British have been reported will
ing to pay something on account on the
June installment According to the
Mellon Baldwin debt agreement, the
British government is in a position to
ask for postponement of the interest
and pay only the principal which, in
this case, is much smaller than the in
terest. It is believed in well informed
quarters that this solution would be &C
ceptable to both Great Britain and the
United States The other countries are
in less privileged position because, il
the President agrees to accept payment
of the principal only, those countries
which have made debt agreements after
the British and have obtained better
interest terms than Britain, are now in
the unpleasant position of having to pay
an important sum for the principal
which falls due in 10 days. To take
one typical case, that of Italy. That
Is some $14,000,000, of which almost
$4,000, 900 is due on account of interest
and the balance on account of the prin-
cipal
But it is believed If an agreement
can be reached between the United
States and Great Britain to get the
June installment out of the way there
is a possibility that the President will
accept q nominal sum from those coun-
tries which are in bad shape financially
and permit them to postpone the bal
ance until the entire question has been
revised.
French Situation Different.
The case of France, however, is likely
to cause more serious difficulties.
In spite of the repeated hints Of the
French government that it would be
impossible for the President to con-
sider' any demand for a postponement
from that country unless the 5000, 900
which France defaulted last December
is paid in full, the French Chamber
seems to be little inclined to make that
payment.
It is said on good authority that, re-
gardless of how much the President
would like to treat the French in the
same way he may treat the other pow
ers, his hands are tied unless the French
government sends a check for the over
due amount Without such a payment
it will be impossible for the administra-
ton to allow the French to postpone a
cent of the amount due on June Is.
For the time being the representa-
tives of the debtor nations don't dare
leave Washington even for long week
end trip. They expect some new de-
velopments almost any day.
Expect U. S. to Act First.
Most of the foreign diplomats con-
tend it is not up to their governments,
but to the administration to take the
first step in regard to temporary set
tlement of the June installment.
They say that in reply to the Presi-
dents statement that the American
Government, as creditor, is willing to
consider any proposals the debtor may
have to make, their special representa-
tives who came to Washington in the
course of the last two months have
placed all the facts concerning the June
payment before the American Govern
ment. These facts were put briefly in
the three words: I'VE can't pay"
Nothing has happened during the last
few weeks to change the situation, con-
sequently the American Government,
having had the reply of the debtor ma
tions as to what proposals could be
made to meet the June settlement,
should send for the various Ambassa-
dors and Ministers and acquaint them
with the steps this country is willing
to take, in order to avoid a general
default next week.