Evening star., 1933-07-09
DEBT DISCUSSIONS
Of YEAR FUTILE
Settlement on Basis of Lau-
same Agreement Would
Leave $1,1O0, 900, 900.
By the Associated Press.

by tne Associated PreSS.
Germany's creditors reached an
agreement year ago today at Lausanne
to cut Germany's reparations payments
down to S714,000 600 OH condition the
United States agree to revision of inter-
governmental debt settlements.
A year OF discussion and default
toward final settlement of the funded
war debt claims of approximately $11,-
900 100000 owed to the United States
by Is nations More than $1,000 600 :
900 Of this total is owed by Great
Britain, France and Italy.
Great Britain and Italy paid the
total installmentS due on their debts
December Is of last year. France de.
faulted on that payment and defaultec
again on the amount due June is o1
this year
Great Britain and Italy made partial
payments on their June Is installments
and again appealed for revision OF the
original settlements.
Cut Made at Lausanne.
The cut made in reparations claims
at Lausanne was 80 per cent OF the
total various powers asked from Ger
many. Great Britain France, Belgium
Japan and Poland signed an agreemen,
with Germany to settle for a 10 pei
cent payment in bonds on condition
that the United States would also re-
wise the claims it holds against Euro
pean powers.
A gentlemen's agreement provided the
reparations cut was to be nulllted Il
the United States failed to grant re-
lief to its European debtors.
President Roosevelt has repeatedly In
dicated a willingness to give European
debtors which have kept up their pay
ments further opportunity TO presen'
arguments for debt revision. Dlpio'
matte representatives OF various oeptol
powers have discussed dates for hear
ings with the White House and the
State Department, but 1t does not seem
likely that formal debt discussions Will
begin before September.
Senator James Couzens, Republican
Of Michigan, who is a member OF the
American delegation at the London
Economic Conference, recently made an
address before the conference In which
he advocated the reconsideration OF both
private and governmental debts with
view to modifying the terms OF payment
and leSsening the load pending the re-
turn of normal economic conditions, but
very definitely said he was not advocat-
ing default.
Congress on Record.
Congress Is emphatically on record
against the cancellation or revision ol
war debt agreements. and the power
to alter the debt settlements is vested IN
Congress alone.
During his campaign for the presi-
dency. Roosevelt indicated he woulc
favor modification Of war debt agree
ments or!y on condition that benefits
to American industry and agriculture
be given in exchange.
War debts are not on the program
of the London Economic Conference
and President Roosevelt has repeatedly
made it clear that he alone will handle
all negotiations for modiflcatlon ol
war debt agreements.
European powers never have made an
official proposal to the United States
for a slash Of their debts in the same
ratio that they agreed to cut repara-
tionS. but many unofficial intimations
have been given by European statesmen
and European newspapers that such q
settlement would be in keeping with tbs
Lausanne agreement and would make
it possible to effect an agreement to
reduce ornaments.
A settlement on this basis would cut
total payments to the United States
down to about Sl,100,000000. sum
which there is little likelihood that
Congress would accept unless accom-
panied by trade concessions of benefit
to American agricultural and industrial
products.
Finland is the only debtor Of the
United States which has met all its
obligations in full up to date.