Evening Star Newspaper, June 27, 1931, Page 4

MELLON AND LAVAL BEGIN CONFERENCE Seek to Harmonize Views on Debt Proposal After ‘Chamber Approval. - (Continued From First Page) on with Germany must be soug rder that the cause of dis- R A %nd_ economic_renabilitation Tmight be promoted in Europe. 5" Flandin Confuses Deputies. - ‘“Pinance Minister Flandin replied m of the objections in a technical . but when he had finished the uation appeared confused and the vernment's position uncertain. ¥The battle was transferred to the bbles, where the opposition occupied 100 “in “maneusering the downfall of the government. The applause which greeted Deputy Franklin Bouillion's trenchant onslaught on the motives of the American President and former Premier Herriot's contention that the Young plan would not guarantee pay- ment for war damage made things look ominous for the cabinet. MMany supporters of the government eemed hesitant and the opposition grew % strength, although the Socialist and Nationalist groups decided to cast a favorable vote. “ Places Responsibility on Chmb::k t that point, Premier Laval t a held and g:clded the fate of the dl‘y. Speaking impromptu {rom his place i grave tones which impressed ail Rearers, he outlined France's position toward America and Germany in & few hrases. ‘el;}:gplplced the responsibility for th; vote squarely on the Chamber an pleaded with the Deputies to vote not for the government but for France. a! told them that however much they dis- lfked the Hoover plan there Wwas ae alternative and that its advantages off~ disadvantages. “'Hl‘:‘ appeal was heard and he was given the support he asked for, but in his own words the session proved that “there were limits to the patience of the public opinion of people whose sen- sibility has been too often subjected to cruel ordeals.” Look to World Collaboration: Prance, proud of her Paliament. Jooked forward today with ealm and confidence to a much-needed era of orld collaboration. » 'Such was the note refiscted in pub- Y opinion as the people’ learned the details of the government's victory in an all-night session of the Chimber. Numerous predictions were heard that President Hoover's propesal, which- first startled France, would lead to momen- tous political understandings and agree- ments calculated to have an immense influence on the economic and financial restoration of Europe and the -ehtire world—and perhaps result in a real Franco-German entente. Premier Laval's solemn message 1o Germany made a_profound jmpression. Tt was generally believed that if Ger- many can give France suitable guaran- tees she will not increase her arma- ments and will loyally respect .all treat®s, the foundations of a Teal en- tente cordiale may be laid when Chan- cellor Bruening and Forcign Minister Curtius come to Paris. Understanding Vital. To the average Frenchman a Pranco- German, understanding seems more vital than an agreement with the United States on_financial questions, because Germany looms up as his great danger. “It_is more important to -aegotiate with Berlin than Washington,” said the business men’s newspaper Journee In- dustrielle, “and to determine whether Germany intends to abandon manoue- vres endangering‘the peace of Europe. Logic should lead us not to conclude the American affair before talking with Germany.” Prominently printed dispatches from the United States reflecting the opti- mism there with regard to Franco- American conversations created a burst of good feeling here. Secretary Mellon and Ambassador Edge will reagh an agreement with Prench officials. it was predicted, if the American delegates will only read the lesson of last night's session and realize that M. Lavals stand is the stand of the people. Rupture Has Been Averted. J'The Paris Midi said the lesson of the Chamber session was that a rupture of the financial conversations with the United States had been averted, as well a the moratorium and perhaps the bankruptcy of Germany. “The wave of confidence will doubtless take on & new volume and will be reflected in the stock markets of the world,” it said. It was learned in officlal quarters that it was improbable the German statesmen would be invited to Paris un- til the Franco-American conversations were sufficiently advanced so that Prance would know where she stood in reference to Germany from & financial standpoint. Importance was attached by officials to the manner in which France might transfer credit for Germany to the Bank for International Settlements, as to how the credit might be extended to other countries and the technical as- pects of the entire operation. ‘The impression here was that it would be unwise to ask the Germans to come until the ground for discussion had been thoroughly prepared. Eco- nomic circles informed the government it should be especially careful to pre~ vent the dumping of German products in France. It was said this question would be handied at Geneva at the forthcoming committee meeting of the Pan-European Unlon. Mr. Mellon stayed up until a late hour with Mr. Edge at the embassy, getting the news of the session, He rejoined Mr. Edge before lunch today for a discussion of the situation, as af- fected by the Chamber's attitude, pre- paratory to his conference with French statesmen this afternoon. PRESS HITS COUNTER PLAN. Outspoken German Journals See Heav- ler Burden in Future. r BERLIN, June 27 (®).—A large por- tion of the German press is respect- ing the government's request not to comment on the French moratorium answer, but the more outspoken jour- nals denounce it in the severest terms. One of the sharpest commentator: surprisingly encugh, is the Democratic oersen Courler, which, under the eaption, “Laval's Unsatisfactory Note,” declared: “If the Hoover plan is an attempt to spin the thread of business and political understanding, this is an attempt to unspin it and burden Gi many even heavier after- the yeai end.” < If tne “poisonous fangs” are mnot eliminated from the counter-proposal, the paper said, Germany 'cannot be convinced that France is really sincere in her wish to effect a community of nations. / . The Nationalist » Der Tag charac- terized the French reply as “Shylock lities.” Lokalanzeiger, under a head ne of “French Chamber Unanimous, for Tribute,” said the various reserva- tions were “big obstacles on the path taken by Hoover,” and wonders what ‘lt(ln Mellon is going to do to get around em. - The Industrialist Allgemeine” Zeitung | declared that France expects all pa- | tions to make sacrifices except. herself, and that it was difficult to view the spirit of the French answer as any- thing but pure hypocrisy. To the Boersen Zeitung the French pote indicated a “fanatic will to main tain the rule of unreason without a thought that the inevitable result would be chaos. There's more at steke than & hait billion s fundamental ‘that there be no innterruption in Ger- 'Secretary Slimson reaches Paris, after le Buena Vista. Va., as & sécond -ant;-Coast-Artitieryr- -~ Laval’s Impaséioned Plea Speech Urging Acceptance of Count?r-P_Iu; to Hoover’s Debt Proposal Stamps Premier as Great Statesman, Even in Eyes of Political Foes. By ‘he Associated Press. | PARIS, June 37.—Premier Lavals plea to the Chamber of Deputies to ac- | cept the French moratorium counter- | plan—delivered just as dawn broke over Paris today— stamped him as & great statesman even in the eyes of his political foes, T he stockily- bulilt, swarthy pre- mier, his black hair more touseled than ever and his face drawn and pale, spoke extempora- neously from the ministerial’ bench in words that showed he was profoundly moyed. “These are grave hours for those who hold the power and Taval responsibility of government.” he began. “On June 17 | the German Ambassador notified France | that his country was going to ask for | a moratorilum. Two days afterward | President Hoover submitted his pro-| posal. “The government might have drawn up & vigorous note embodying the re- actions of the people who have suf- fered so much and who do not wish thelr rights neglected. this we would has ght have simply accepted President Hoover's proposal as other powers have done already. | “Gentlemen, you the soverelgn rep- resentatives of natlonal will would not | have approved such a step. We have | prefer:. our method of action. You ! can’t deny my quality of calm and sangfroid.” { | | Decided on Reservation. The premier reculled that Mr. Hoo- ver had requested pure, simple adhesion, but sald the French cabinet unanimous. ly decided upon the reply which con- tains reservations. He said it now re- mained to be seen whether the govern- ment ‘had. acted mhu{‘ or wrongly. “Imegine you would have disapproved me tomortow,” hé continued, “if nego- tiations with the United States had | been broken off and if we were unable | to hold conversations with Mr. Mellon and Ambassador Edge. | “If Germany was no longer pro-! tected by the American proposal she | would turn toward France to demand a moratorium. Flandin has explained | how the American plan, amended, will | cause less harm to our finances than & moratorium. I don't wish to envisage any hypothesis. ‘The problem is so exceedingly deli- cate I don't hesitate to afirm that if ‘you overthrow us the government which succeeds, unless it betrayed the inter- ests of Prance, could not break with the United States.” Denles U, 8. Utimatum. Denylug the United States had sent an ultimatum to France, M. Laval con- tinued in tones of solemnity which drew and held the eyes of the Deputies. “Listen to me,” he said. “Two days 2g0, in a message widely radioed, Chan- cellor Bruening sent out an appeal for collaboration with Prance, and I replied to his appeal. M. Briand saw Ambassa- dor von Hoesch and told him the French government would invite Bruen- ing and Curtius to come to Paris as soon as possible. We have no need of lessons in patriotism. I know the lon- guage to use in talking to Bruening. ‘The sacred rights of France will be d fended.” He placed emphasis on the fact that France in 1926 was in & more critical position than Germany is today, but that France did not call for foreign as- He sald France herself had continued. have adopted toward Germany s polky of' co-operation. We don’t think the moment has come to renounce this policy. Germany is pass- ing through difficult days. Under cer- tain conditions Germany will find in France the necessary assistance. Pleads For Co-Operation. “We will say to Bruening that if this policy of European co-operation is to have happy results, the thick mosphere, which now enshouds Ge: many must be dissipated. We will tell ruening we come to ald Germany, if ten billions, whereby the German budget will be lightened ,will not be utilized for increasing armaments to be directed nnll:n France and the peace of the wor] “We will tell Bruening, and I already | have said the same thing to President Hoover, that the state of public opinion in France as well as the session held tonight by the Chamber proves that one cannot with impunity trifie with the sensibility of & country. To permit the government to accomplish its purpose we will not talk a language, which will strike & blow at the dignity of the German people. “We wish these two great peoples may findeagain the beneficent laws of organized peace. Now, I tell you it is not for the government you are going to vote, but for France herself. In the question of the national interest I im- plore you to reflect, to examine your consciences What would the morrow bring if you decided to break off all conversations with the United States and Germany."” He received an ovation as he re- jumed his OFFICIALS EXPRESS OPTIMISM IN DEBT - AGREEMENT OUTLOOK (Continued From First Page.) loans in Latin America the President’s | moratérlum plan could not apply there | and the Federal Reserve Board has no responsibility for the private loans. In response to ques , Castle Indi- cated the Federal Reserve Board was an independent body, which could not be Influenced by the administration be- yond - suggestions. Deeision as (o whether these suggestions would be garried; out -rested _entirely with the rd. Two Polols Stand Out. One important point stood out in the differences between the Washington and Paris viewpoints on the mora- torium proposal. This was President Hoover's stand that the debt sus- pension include all intergovernmental payments and the Prench insistence many’s unconditional reparations in- stallments. Suppert Based on No Madification. In addition, the United States ad- ministration had to take into consider- ation that pledges of congressional sup- | port made earlier in the week were | based largely upon the assumption that | there would be no modification of the | President’s Dplan as originally an- | nounced. { Secreldry Mellon and Ambassador | Edge bore the brunt of negotiations in Paris today, fortified by fresh instruc- tions from their President, while Secre- lary Stimson was en route for Europe to engage in person«l discussions with the leading statesmen of the Continent. ing camp ail developments as soon ai they materialized. The camp is in a isolated section, but direct telephone wires from the Executive Mansion were | available to him with dispatches and | instructions, Week of Unusual Activity. ‘The President could look back upon | a week of unusual activity of interna- | tional importance. Last Saturday night | he announced his offer to- suspend for a year, beginning July ‘1, payments on war debts to the United States, pro-| vided other countries would declare & moratorium for a like period on all in- tergovernmental obligations. Most of the powers involved have ac- cepted the idea, The future of the entire plan rests principally upon recon- ciliation of the French and Ameérican attitudes. Suggestions in. diplomatic circles, fore- cast concessions by both nations. Some held that the United States will accede to the French counter proposal for con- tinuation of Germany's unconditional reparations puyments to the Bank for International Settlements. They con- ferid, though, that the American nego- tiators will insist that no interest be charged on the resulting credits and that they be able only to Germany. Stimson to Join Mellon. Hope was expressed that by the time conferring with Italian official the major barriers to consummation of the plan will have been overcome. The Sec- | retery of State, however, is prepared to | Jjoin Secretary Mellon ‘l;l Ambassador | Edge in preliminary talks, | Meanwhile the administration con- tinued hopeful that no barrler will de- velop to congressional approval of nec- essary legisiation. Some officlals were especially pleased at the approval in Atlanta last night by Chairman Jouett Shouse of the Democratic National Executive Committee. Republicans did not seem especially concerned about his remark that it might lead to “an en- tirely new set of issues” for the next presidential election, SEVEN COMMISSIONED ‘War Department Issues Army Re- | serve Orders. Commissions in the' Army .Reserve Corps have been issued by the War Department to Guy N. Church, Falls Church, Va,, as a major, Signal Corps; Aloha H. Crowther, Laurel, Md, as a first lieutenant, Medical Corps; 8.~ Prince, vy Chase, Md.. as & second lleutenant, Field Artillery: Ebon C. Jenkins, College Park, Md. as & ‘second lieutenant, Engineers; Albert D. r, 204 Washington avenue, Alex- ndria, Va., as a first lieutenant, Med- ical Corps; Milton L. Byrne, East Falls Church, Va., 8s a second lieutenant, Engineers, and Douglas T. Hughes, Mellon Telephones For Guidance in Debt Delay Parley By the Associated Press, PARIS, June 27.—The trans- atlantic telephone connecting the United States embassy with Washington played & useful part in Secretary Mellon's prepara- tions for today's conference with French statesmen about the Hoo- ver plan, Mr. Mellon telephoned to Wash- ington—presumably to the Pres- ident—several times last night before he left the embassy, where he had been conferring with Ambassador Walter E. Edge, and again this morning he was on the transatlantic line. WoobpwAarD & LoTHROP Readi-to-Sew Dresses Completel Matched Packed in IDEBT PLAN BRINGS POLITICS T0 FRONT France and Italy Seen as Likely to Make Certain . Demands on Germany. BY CONSTANTINE BROWN. Direct conversations mggarding the Hoover proposal between the French and the German governments, with the full knowledge and approval of the American Government, have started and are sald to be progressing satis- factorily. Their scope is to facilitate a solution whereby the French and Ger- man points of view can be reconciled and brought Into harmony with the basic prificiples of the President’s plan “These tonversations are reliably re- ported to have besn started at the sug- gestion of the Secretary of the Treasury, Andrew W. Mellon. When it became evident that the French government regardless of its desire to co-operate with the President, could not agree o his suggestion of asking the French Parliament to vote for a complete sus- pension of all debts and reparations, It seemed as if the whole plan would be deadlocked. Political Angle Seen. ‘The idea is that the best thing for the two countries would be to iron out thelr difficulties, and if their eventual agreement fits in with the President's views and does not place the whole burden of the settlement on the United States, it 1s likely that it will be ac- cepted by this count It appears, however, that it will be difficult to bring the French and the German statesmen face to face without the French asking to discuss certain po- litical aspects of the European problem, and it is again probable that the Ger- ans will be asked to make certain po- litical concessions before the French agree to any reparations sacrifices. This is fully understood here and does not enter into the picture the President has in mind. jhould the French bring up these matters the en- tire problem will become complicated and certain foreign representatives have discreetly asked for explanations from the State Department. Italy May Prove Problem., It will be remembered that Italy in- tended before giving & final answer to the President’s proposal, to ask Ger- many to abandon its proposed customs union with Australia. When Premier Mussolini was informed that such a re- quest would cause a painful impression here because the Presiceni had ex plicitly expressed his aversion to i Jection of any political matter, Signor Mussolini_conceded his unqualified a) proval. Now, If the French are per- mitted to bring political matters into their conversations with Germany, Italy would feel that she was being ssked to make substantial financial sacrifices without getting the same political ad- vantages as France. In spite of these complications, there is still an optimistic feeling . Wash- ington. It is belleved in State Depart- ment and diplomatic circles that, sl- though the negotiatiohs will be more protracted than it was thought at first, the European nations will get tog ther and reach .a compromise which would ;Al.llly them and American publ'c opimr- on. In certain quarters Secretary of State Henry L. Stimson’s sudden departure to Europe at a time when his presence here is deemed essential is interpreted as an indication that the President’s proposal is either doomed to failure or may have much more important consequences than it was originally considered. A section of diplomatic opinion be- lieves that, since a Franco-German po- litical agreement seems to be neces sary before the economic settlement, it 10™ 11™ F aND G STREETS y Cut, with Trimming, an Envelope Now you may have hand-fin- Especially difficult is the case of Italy. | ished clothes at what the ma- terial alone would ordinarily cost—and it means only about an hour of sewing, with the most difficult part, the cutting, done. No need, now, to search for exactly the right trimming, or to worry about whether . the garment will fit. “Readi-to- Sew” Dresses are packed with a picture of the finished gar- ment and sample of the fabric on the outside—and best of all, buttons, belts, pleating, em- broidery, hemstitching and all trimmings are included. The sizés are full-cut, ‘with- three- quarter-inch seams allowed for sizé adjustments. Plain or Printed Cotton Readi-to-Sew Dresses and Suits. $3.50 and $4-50 \ Plain or Printed Silk Readi- to-Sew Dresses and Suits $5.50 1o $7.50 ‘Women’s and' Mis: Sizes, 14 to 44. Many styles, in a wide range of colors and patterns. Corrons ARD SiLks, Szconp FLooR. STIMSON T0-HAVE: OFFICE ON LINER Special Communication Fa- cilities Will Keep Him in Touch With Debt Situation. By the Associated Press. NEW YORK, June 27—A of - fice for Henry L. Stimson on team- ship Conte Grande will be busy for the next week, Secretary of State flew from Washington last evening to take the liner for Europe at noon, New | York time, today. £ He came' to Mitchell Fleld in an Army airplane piloted by Lieut. Louis M. Merrick. He left shortly after by motor for his Summer home, at Cold Spring Harbor, Secretary Stimson was optimistic concerning an lnlernlflnn;l .""nz‘me:t on the proposed debt and reparations murhhlfl;t:m as he salled. During his irip he is expected to join forces with Secretary of the Treasury Andrew W. Mellon in urging Europe to accept the Hoover plan, “I have been asked to comment on last night's vote of the French Chamber of Deputizs, and I decline, except to say that I am very optimistic as to the ul- timate result,” he declared. This statement, which was the only one he would make to reporters who boarded the liner to question him, was interpreted as a denial of a statement attributed to him a few hours earlier. In the earlier report he had been quoted as saying last night's vote of confidence by the French legislators was a clear ludication that France and the United States would reach a satisfactory agree- ment on the deb d reparations mora- torium. He plans to visit Rome, Paris, Ber- lin and London and to do some grouse shooting In Scotland. It is believed he will confer with various foreign min- isters concerning President Hoover's proposed suspension of war debts for & year, The office has special communica- tion facilities for Mr. Stimson so he can keep in touch readily with inter- tional developments during the trip to Naples. Accompanying him are Allen T. Klots, his special assistant; Capt. Eugene A. Regnler, U, 8. A, his mil- itary aide, and George A. Morlock, code expert. APPEALS CONTEMPT CASE Special Dispatch to The Sta BALTIMORE, June 27.—Norman S.°| Bowles of Washington, whose appeal from s 75-day contempt sentence by Judge William C. Coleman was over- ruled by the United States Circult Court of Appeals. has taken his case W the Supreme Court. Judge Coleman received the an- nouncement yesterday. He had sen- tenced Bowles for contempt on the grounds that the latter, although dis- barred as a Washington attorney, had appeared in Federal Court here to rep- resent an alleged liquor law violator. A stay had been granted following & move by Col. John Philip Hill, at- torney for Bowles, to carry the case to the highest tribunal. is within the realm of possibilities that a general discussion of all political problems will take place this Summer. Secretary Stimson’s visit to Europe is regarded as an indication that he will be there ready to help the nations which may be anxious to settle their political troubles. It appears that the loan granted to Germany by International banks re- moves the question of immediate neces- sity for the adoption of the Hoover plan. There is now plenty of time for negotiations and discussions, and it seems that Europe means to take all the time it needs before it agrees to settle its problems. 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