Evening star., 1933-01-21
ROOSEVELT GIVEN
j. S. LEAD ABROAD
President-eIect Assume S
Control of American Foreign
Policy Regarding Debts.
BY CONSTANTINE BROWN.

BY CONSTANTINE BROWN.
The helm. of the American Ship of
State, as far as its navigation in for
eiRn waters Is concerned, has been
placed in the hands of President-elect
Roosevelt This Is about the most posi-
tive result of the White House confer
ence yesterday between Mr.. Hoover and
his two chief advisers. Secretaries Mills
and Stimson, and Mr.. Roosevelt.
After the conference, Secretary Stim-
son went back to the State Department
and in the afternoon had a long con-
ference with Prof. Raymond Moley, dis
cussing the fundamental facts prelimi-
nary to the work the State Depart
ment will have to do in connection
with the fact-finding process about
4 Great BritainS capacity to pay, which
will begin as soon as the British gov
ernment Is ready to open conversations.
In the evening Secretary Stimson
sent for Ambassador Lindsay to whom
he communicated officially the decision
Of the President -elect, to begin CONVEX
sation with the British government and
invited him to tell his government that
the State Department was ready to re-
ceive the British delegates.
Hampefe0 conference.
One of the facts which caused the
Hoover Roosevelt confab of yesterday
was that the American experts at the
International Economic Conference
found 1t difficult to come to an agree
ment with the other experts on the
agenda because the question of debts
cropped up almost every time when
they approached the important ques-
tions OF general concern which will
have to be discussed at that conference
Take, for instance, the question of
the gold standard. Every one of the
countries which has not abandoned the
gold standard is anxious to have Great
Britain return to that system. Britain
is willing enough, but her experts were
pointing out rightly that 1t will be USE
less for their country even to attempt
to abandon its present monetary status
unless she knew exactly what her obli-
cations toward the United States were
In regard to the future payments of
the debt.
On the other hand Great Britain had
made it very clear to the American
Government that her December pay
ment was the last under the old Bald
Wn-Mellon agreement and that unless
something was done before June is,
when the next inStallment is due, she
will be placed in the disagreeable posi-
ton Of defaulting.
Consequently it was obvious that
something would have to be done as
soon as possible.
Both Mr.. Hoover and Mr.. Roosevelt
were in full agreement on the subject.
They were agreed last December when
they met for the first time to discuss
this subject, but they could not agree
IN the method to be adopted.
Disagreed on Procedure.
While President Hoover insisted that
b commission with some kind of back
ing by Congress should be instituted,
Mr.. Roosevelt declared that the exist
Ing diplomatic channels were SUFFICIENT
for the preliminary stages. Mr.. Roose-
Felt's argument was that such a COM
khission should restrict its activities to
mere fact-hndtng and as such, If it
had any congressional authorization,
the debtor nations might interpret that
the pourparlers which were to be
carried out were binding for the
United States. And this was not the
case. Conversations between American
State Department officials and foreign
delegates would have an informal char
tcter, would find facts as any other
commission, and yet would not reflect
IN any way upon the Congress of the
Omitted States on whom rests ultimately
the decision of scaling down or cancel
ing the war debts.
It is only on this point that there
was a divergence Of opinion between
Mr.. Roosevelt and Mr.. Hoover, and this
led to the stalemate Of the last few
weeks.
In the meantime the British and
other foreign diplomats in Washington
were asking the Secretary of State dis
creetly, but insistently, whether any,
thing more about the debts question
would be done under the present ad-
tninistration
The reports Of the American eco
nomic experts at Geneva and the Ques-
tions Of foreign diplomats in Washing
ton were reported to Mr.. Roosevelt by
Secretary StimSon during their inter-
view in New York two weeks ago.
Agreed on Prompt Action.
Mr. Roosevelt realized that it would
be to everybody's advantage to begin
Investigating the capacity to pay of
those nations which met their obliga-
tions last December.
He agreed with Mr.. Stimson's point
q view that the fact-finding commits
sion would have an arduous job and
the sooner it began its work the better
It would be for all concerned
The operation Of taking the economic
and the financial inventory Of a nation
y long and tedious task. The COM
pission would have to go into the ques-
ton OF taxation, gold reserves, trade
balances and other such important
topics. There will be only about three
months between the Inauguration and
the time when the next installment
3ells due. In this time not only would
the American commission have to find
hn wy 70 akc f~,;~
Britains capacity to pay, but Congress
would have to discuss the matter too
The remaining six weeks Of the Repub-
ucan administration could be made use
Jul II an investigation started at once
Mr.. Hoover realized the importance
k this situation and also that the set
element Of the debts is no longer mat
Ser Of party politics but a matter con-
Cerning the welfare of the country. If
satisfactory solution could be found
bome time before June IS. 1t might be
possible that the economic conference
Ahould give some positive results to help
Uowards general economic recovery.
Hoover Gave Up View.
He consequently abandoned his stand
On the commission with congressional
Endorsement and accepted Mr.. Roose-
velts point of view Of having the pre-
hminary work done by the State De-
partment In the meantime he in
structed Secretaries Stimson and Mills
to place themselves and their depart
ments at the disposal of the President
elect and cooperate with him III 49,
matter Of debts as if he, Mr. Roosevelt,
were already in fact the President of
the United States
1t is believed in high Official circles
that as soon as the British make 1t
known who is going tn he the snokes
man of the British government, Mr..
Roosevelt might follow Mr.. Stimson's
suggestion Of last November and desig-
nate his future Secretary of State, who
would come to Washington to work in
close cooperation with Mr.. Stimson
The secretary designate would for all
intertS and nllrpoSes be the secretary