Evening star. [volume] (Washington, D.C.) 1854-1972, 1936-11-15
WAR DEBT PAYMENTS
MAYPAVE WAY TO FARLEY
Foreign Powers Watch Roosevelt Peace
Making Course Intently, Seeing Chance
He Will Join European Appeal.

arms conference, covering also the
subject of economic disarmament.
The success Of the latter depends
upon the outcome of the first two
conferences. Meanwhile faith in the
effectiveness of conversations in place
of the force of arms must be revived
among the European peoples. Efforts
will also be exerted to restore among
the American people confidence in the
good will of the nations across the
Atlantic To this end American AM
bassadors in Paris and Rome are dis
cussing-very informally-plans for
resuming payments on the defaulted
war debts.
Ambassador William Phillips. for
mer Undersecretary Of State and for
more than three years close col
laborator OF President Roosevelt and
Secretary of State Hull, is at present
discussing the terms of reciprocal
trade agreement between Italy and the
United States. This agreement will
be based on resumption Of Italian
debt payments.
Mussolini feels keenly the effects
of the johnson act. Italy is in sore
need of money for the development
of Ethiopia and for internal economic
reconstruction. Wall Street is willing
enough to furnish the funds, but it
cannot do so because the johnson act
forbids all loans to defaulting nations.
The debt inStallment the Italians
owe this country on December Is does
not exceed $4,000, 000-a sum which
Italy can easily afford to pay. Musso-
lini intends to meet the payment-on
certain conditions. Heretofore. the
Italian dictator claimed that he could
not continue his war debt payments
because such payments would bring
forth from London a demand that
Italy pay her debt to Great Britain,
too. Moreover, II Duce feels that pay
ment in gold tranSfers-even If the
amount is scaled down so per cent
will badly upset the Italian treasury.
Ambassador Phillips has, however,
opened new possibility for overcom-
ing this problem by payment-indi-
rectly. at leaSt-in Italian products.
There have been clear hints in Rome
that settlement of this difficulty would
considerably ease President Roose-
velt's role as peacemaker.
The French, and particularly Leon
Blum. are even more anxious that
President Roosevelt should help bring
about pacification of Europe. For
France the Intervention of the United
States in favor of limitation, and
eventual reduction, of ornaments, has
become a matter of life and death.
Not only Is Blum ready to take the
initiative in holding such confer
ence, but he, too. is anxious to regain
the confidence of the American people
by settling the war debt question. 1t
hurts Leon Blum to be told that in
the United States France Is considered
as "welcher No. L.
Blum Favors Liquidation.
Blum, soon after coming into ONCE,
made a declaration to the effect that
the war debts should be Hquidated
soon. He repeated this statement,
unofflcially. to Americans with whom
he discussed the matter during the
course of this last Summer. His point
Of view Is that payments must be
made, part in gold and part in prod
ucts, but, until the channels of in
ternational trade are opened up again,
it will be difficult for any nation to
live up to these terms This opinion |
is shared by Edouard Herriot and 4
number Of prominent members of both |
houses of Parliament.
For the time being there have been |
no official or unofficial conversations
with Great Britain regarding the |
eventual resumption of the war debt |
payments. But there is a feeling in |
the State Department that London
cannot help but follow the other
nations, once they start paying And |
France and Italy may impel the re-
moval Of the war debt apple of dis
cord" between this country and |
Europe, mainly because they want to |
strengthen President Roosevelt's hand
in attacking much more important
problem-the pacification of Europe.
(Copyright, Mcclure Newspaper Syndicate) !