Evening star., 1936-12-26
W. DebtBa
Decrease Held
1nprudent
Long Retirement With
Easy Interest May
Attract France.
BY DAVID LAWRENCE.

- ELECTION Of Albert Boni, who
has been French minister OF
l.. finance, to be French Arlbassa-
dor to the United States is
taken to mean here that negotia-
tions will be begun shortly to attempt
TO settle all war debt questions between
America and France.
Strangely enough, there prevails in
administration quarters belief among
the Presidents advisers that Mr..
Roosevelt, by reason Of his overwhelm-
Ing majority in the National elections,
can do about As he pleases with re-
spect to war debts.
But on Capitol hill there is an en-
tirely different impression. It is
known that one of Mr.. Roosevelts
chief supporters in Congress, man
upon whom he relies for advice and
help in legislative matters, has frankly
told the President within the last
fortnight that he can have almost
anything he wants out of Congress
except q cancellation of war debts.
Just why the conversation between
congressional leaders and the Presi-
dent should have occurred at all is
somewhat of a mystery, unless it was
due to the recurrence of rumors and
reports to the effect that foreign gov
ernments would like to reopen debt
negotiations.
Attitude Puzzles Europe.
European governments have been
somewhat puzzled of late as to Amer
teas attitude. They would reopen par
leys at once If they thought the United
States would agree to cancellation. or
at least some small payment Of lump
sum. But even the foreign govern
ments are loath to believe the reports
they have been getting to the effect
that the last election meant cancella-
ton Of war debts for them.
The most interesting aspect Of the
matter Is the way the debt question,
allowed to drift along for the last
four years, has been put out Of the
minds Of foreign governments again
and again as q subject for concern,
only to discover that it Is one OF
those lingering affairs that never
seems to heal.
Then Again European countries
feel themselves on the verge OF war
conditions and they recognize what
the friendship Of the American PEOPLE
might mean to them in an emergency
--And that does not by any means
refer to armed help. The possibility
OF embargoes going to the point of
perhaps withholding food supplies II
1t Is desired to maintain meticulous
neutrality worries those European
nations with a limited food supply.
Tourist Trade Falls.
Then there is the matter Of tourist
trade. France, for example, has not
had in the last few years the tourist
trade formerly enjoyed. 1t seems in
credible that this should have been
associated with such an abstract sub
ject as the war debts, but neverthe-
less nations seeking tourist trade are
anxious to eliminate every possible
impediment, no matter what it is.
The desire OF the French govern
ment is to reach some satisfactory
solution Of the war debt problem.
This has been indicated time and
again. A basis for settlement can
readily be arrived at IL the French
government takes realistic view Of
the matter and II the United States
Government does likewise.
The essential point about settle
ment Is that the principal shall not be
reduced. There has been q complete
revision OF interest rates throughout
the world in the last couple years, 80
countries be given the benefit of lower
interest payments. This means, nat
urally, q revision of the sums to be
paid annually. Obviously, nations
cannot at this stage of world eco
Monies pay rs well as they may be
able to do later on. Hence, q slowly
ascending scale Of annual payments,
with perhaps longer spread of years,
but retention Of the face amount Of
the principal, as the main item of a
refundins agreement would probably
meet with favor ss formula on both
sides Of the Atlantic.
The coming of new French AM
bassador specially skilled In financial
matters Ia bound to lead to q new ap-
proach 10 the debt problem. 1t Is un-
derstood also that informal conversa-
tions already have begun at Paris be-
tween American Ambassador Bullitt
and M. Boni, though it is not likely
the American envoy could say any
more than Secretary Hull has been
saying here, namely, that the United
States Ii ready and anxious to examine
any new proposals for o debt settle
ment which France or any other
country owing us war debts may wish
70 transmit for discussion.
tCopyrisht. 1850