Evening Star Newspaper, December 12, 1932, Page 4

5 2 o MED ON HOOVER Present Trouble Due to 1931 Moratorium, Herriot Tells Deputies. ___ (Continued From First Page) 000 Americans subscribed to the loans | to tbe allies. We must think of the | 0BT CONROVERS title in. fln‘:wm Skt ing! “T especially want to make understood ahbroad, particylgrly “in. the Umfited States, the disa) to advice that she collaborate in international .recon- struction, on the day when sh even temporary benefit from her col- laboration, is met by doctrines which are contrary to those on which the appeal was made for her help.” Laval's U. S. Visit Recalled. THE - EVENING “the Hoover moratorium cost France | payment pending the projected World Conference tentati Economic ively sched- uled for some time early mext.year. hostile to payment A vel also among the ting it of Prance|the Left at a_mee dressed by finance minister, and former minister of the general was that the govern: ment W have a hard time Parliament’s approval for payment wi the re: contem; ‘There Was more applause and Deputy |'is Jean Renaud interrupted. “Then the conclusion is,” he called, “that we must not pay!” The premier went on speaking. The Hoover-Laval talk in Washing- ton last Summer, he said, constituted a new appeal for confidence and for an end to the chaos in Europe. effect our decision will have on those ople. If we don't pay it will mean| he end of the Mellon-Berenger accord.” | When he had finished speaking the | nber adjourned until _tomorrow | ernoon. Outside the buildings several | ired police, mounted and afoot ed the streets ready to preven monstrations, They had nothin do. | Heerriot declared the debts mora- | tortum which President Hoover de- clared in 1931 was the cause of all the present troubles in which America’s debtors are now involved. | “This js my_ interpretation of the | Hoover morgtorium,” he said. | “If the United States did not want | to concern itself with the problem of reparations, Mr, Hoover should not have become involved i it. He should have allowed Germany itself to ask for the moratorium . provided -in the Young plan.” These statements came in the course of an exposition of the history | of the debts issue. The premier criticized other depart-| ments of the American foreign policy, | beginning with the refusal of Congress | to approve the League of Nations as| sponsored by President Wilson. Misunderstandings Traced. “The United States he said, “never | took its Tightful place -at the table in| the Council of Nations.” He insisted that America became in- volved in the reparations problem when it allowed Charles G. Dawes and Owen D. Young to frame the reparations plans which bear their names. The misunderstandings which have arisen between France and the United | States since the armistice, he said, re- sulted from the fact that the pact of guarantee which was arranged to com- plete the treaty of Versailles “and which was to have been signed by the United States and Great Britain, had become null and void.” He raised his hand to still the applause. “Moreover,” he went on, “we did not have the joy of receiving the United Btates into the League of Nations. These are some of the early difficulties which have influenced succeeding events.” Moratorium Costs Shown. The Hoover moratorium, said the remier, cost France £16,500,000; Eng- and, £9,700,000; Belgium, £2,400,000, %and Italy, £1,800,000. “At this time,” he sald, “when there ¥4s talk of a link between debis and disarmament, I have the right to bring there things to the attention of all the American people who have lofty and Just ideals.” He recalled how the American experts wo-operated in the elabcration of the § Young plan. % “No one can deny,” he said, “that 4§ this plan, evolved by an American, %.created a link between reparations and international debts.” He said that many members of the French Chambér:af Deputies regard the 9 Bank for International Settlements as “a clearing housé to assure constant co- & relation between reparations and cebts. . Then he paused for a moment. “It was the intervention of President % Hoover,” he sald slowly, “which de- % stroyea everything and reopened every- % thing.” g ‘There was another burst of applause. =‘ “As a matter of fact,” he continued, LR DT Lt i i 5. @ ok 6t o IO TREEETEETRRTER IR IO IR TR NN AN AT BN RSN Ry Y £ I3 P L P LT YRE RS RS e R RRY TR I8TCaRT S TN BT IR cwrs e e (s et O ] “Germany especially heard that ap- peal,” he declared, “and demanded a meeting of the Consulative Committee provided for by the Young Plan. The experts met and recommended meas- ures for the restoration of confidence wcg\'ernmflodlwmthm the crisis France, which suffered cruelly throughout the war, was badly hit by the economic crisis, he said. “She was proud enough not to ap- peal for pity, but she did ask her citi- zens to consent to heavy sacrifices.” Declares for Payment. Emphasizing the constructive char- acter of the Franco-British agreement to suspend French payments to England pending ratification or denunciation of the Leusanne accord, Premier Herriot said: “The Lausanne accord was favor- able to the United States because it increased by 100 per cent the value of Arhericans’ private credit.” He added that “the next step to Lausanne is not only at Geneva, but is also at Washington.” The premier, discussing possible solu- tions, which he sald must be worthy of | French dignity, declared arbitration represented an interesting suggestion, but that it would be impossible for the present because it involved acceptance and compromise by the French govern- ment with the American Congress. Premier Herriot thereupon declared he favored payment. ‘While not revealing for the moment any reservation he might have, Premier Herriot rejected the idea of payment into the Bank for International Settle- ments or the Bank of France as un- worthy of French dignity. M. Herriot declared he was not in favor of non-payment “at & time when France wishes to honor her signature. I wish you to have confidence in me,” he said. He went on to declare he could not accept a proposal to pay without reser- vations. Awaits Action by Britain. Herriot announced earlier that France will wait and see what England does before stipulating her own reservations in the payment due on Thursday. The government at London, he said, already is considering its position in the light of the latest American note and, inasmuch as France and d have been working together- closely on this whole matter, France will await the British decision before making her own. It appeared that M. Herriot and Prime Minister MacDonald of Great Britain had thought the debt problem had been temporarily adjusted by England'’s last note and M. Herriot hoped to have the French Parliament duplicate that memorandum. The phraseology of the American reply, however, seemed to have precipitated a new situation. Conversation Pessimistic. It was reported that Ambassador Claudel in Washington had advised him that there is no hope that the United States will accept beforehand a request for an international conference to set- tle the debt problem. ‘There was considerable excitement as the members of the Chamber gathered in the lobbies before their session, and the conversation was pessimistic. The Socialist group, with two oppos- ing votes, adopted a resolution asking the government to defer the December Rt Ky P b 5 K D DX with that of England.” Regrets Strict Application. The Socialist resolution for post- ponement asserts that France is con- fronted by the clear refusal of delay which the United States made to Great Britain. It expresses regret that Amer- ice insists upon strict application of the debt agreements and cannot accept any conditions or political _declarations which do not conform to the terms of those agreements. The resolution invites the Govern- ment to declare that the circumstances under which the ‘original agreements were ratified have been modified by the Young plan, the Hoover moratorium, and by the “constant intervention of the United States in relations between European creditors and debtors.” “Under these conditions,” the resolu- tion says, “France, like other debtors and without being in default, has the right to contest the execution of the debt accords. “Moreover, desirous to avoid menacing the future of Europe and the world by making & payment which is not jus- tified, the Socialist group recommends that the government, in accord with England, summon a general conference for adjustment of international obli- gations.” Shortly after 3 o'clock the Chamber of Deputies went into session, and the premier mounted the rostrum. Outside there was a heavy police guard to pre- vent manifestations against payment of the December instaliment. BRITISH DEBATE WEDNESDAY. Expected to Pay With Reservations Despite Warning from U. S. LONDON, December 12 () —Stanley Baldwin, acting head of the government in the absence of Prime Minister Mac- Donald, announced today that general debate on war debts will be held in the House of Commons Wednesday. He said no special legislation would be required for withdrawal of gold from the Bank of England to cover the debt installment due Thursday. ‘There will be full and free discussion on all phases of the debts, with a com- prehensive statement by Neville Cham- berlain, chancellor of the exchequer, he promised. The members bombarded him with questions as to whether the House will be given a chance to vote on payment or non-payment of the $95,550,000 due. Mr. Baldwin said no special resolution would be introduced. Several members told him the Amer- ican Congress and the French Chamber of Deputies would discuss the matter, and they asked whether France and Italy were going to pay the December installment. Mr. Baldwin replied that what is wanted here is an open discussion in the Commons without reference to what any other government is doing. He made it clear that the British gov- ernment’s policy of paying the debt when it is due had been decided upon independent of Parliament’s approval or disapproval. Will Ignore U. S. Warning. It was predicted in well- nformed quarters that Britain will pey its in- stallment Thursday with a reservation that it be credited on the capital ac- count despite warning from the United States against such procedure. Under the present debt settlement, the $95,550,000 includes both capital and interest. These quarters exp‘rfig the United States would accept hristmas Sale STAR, WASHINGTON, mfi.'flhthe‘declfl"fimm Gov- = has ,tl:: power to accept’the British reservaticn. Thus the question would be carried over into a general review of the debts mflw which the British and government leaders have ‘The effect of this listing of the pay- ment on the capital account was ex- pected to call for a new settlement. ‘The American note which here early today, stating congressional roval was necessary before proposed itish reservations could be accepted, was regarded as merely stating the legalistic position, it was said. Cabinet Will Convene: The view was taken that this was all that could be expected from the United States administration. At the same time it was pointed out the British government has stated the terms under which the payment will be made, which brought the quick warning from Washington, and it was predicted the government now_would proceed with the payment. It was considered inconceivable that the United States would refuse payment. It was learmed that a cabinet ses- sion, which was expected to frame Brit- tain’s next move in the high-speed war debts ~iplomacy, would follow Premier MacDonald'’s arrival at 3:30 p.m. from Geneva. Another way of viewing the situation here was that Britain would make the payment as if to a court and that the manner in which the payment is dealt with in the bookkeeping of creditor and debtor countries may become & minor problem as compared with the whole war debts situation. A government statement on the sit- uation was expected later today, either in the House of .Commons by Neville Chamberlain, chancellor of the ex- chequer, or after the cabinet session by Mr. MacDonald. Surprised at Warning. Surprise was registered at the United warning and strong reaction was ipated in Parliament. Astonish- ment was expressed in newspaper spe- cial editions. The Herald’s political writer saw “a sudden dramatic crisis between Britain and the United States.” Something of a speed record in dip- lomatic dealings was set when a note arrived early today stating the Secre- S tary of the United States Treasury had | no right to accept Thursday's payment | as a credit on a future debt settlement. Only last evening a British government note was dispatched to Washington saying the installment “is not to be re- garded” as a resumption of payments under the present agreement. In high British quarters no answer to this note was expected as it gave | notice of intention to pay. But today immediate parliamentary debate was expected with strong pressure from that body on the government to withdraw its decision to pay. Large Headlines on Story. A point made in the American note, to the effect that congressional ap- proval was necessary for any of ihe stipulated reservations, was unexpected in government circles. ‘The swiftness of the American reply and the contents of that document stirred London es newspapers published it with their largest headlines. ‘Dra- matic Debts Sensation” was one. ‘The Herald political writer said: “B; rejecting the British offer the United States has played right into the.hands of those who throughout the contro- | versy have claimed Britain could not and ought not to pay.” Now there was “every likelihood of @ big swing of members of Parliament to the view that Britain should make no more payments until there is a final settlement of the debts problem,” he wrote. Editorials in inside pages of news. papers, which dwelt on the British gov- ernment’s implication of a “never again” view of the Yresent debt arrangement and apparently did not anticipate the speedy reply, stood as originally written. ‘The Herald was the only paper ex- pressing the possibility of dissent in the United States. It said editorially the British note was-“none too urbane” and expressed doubt whether the reser- vations would be accepted. A D. C, AMERICA IS FIRM IN DEBT DECISION Reason for New Note From Britain Mystery to Officials. (Continued Prom First Page) the question of revision of the war debts were . revived, the. several American notes were extremely clear on this sub- Department officials say, must have, realized the British claim that the $95,000,000 payable Thursday should be considered as an advance on the total sum to be agreed upon later when the Congress decides to reopen the debt- settlement question could not be ac- cepted by the United States Govern- ment, because it would mean this Gov- ernment takes it upon itself to make decisions vested in Congress alone. Possible Explanation. The only explanation of the note is that the British government decided to send this new communication to the American Government as a result of some understanding between Ramsay MacDonald and Premier Herrlot of France. This is, of course, pure con- jecture on the part of certain authori- ties which have been watching closely the British and French relations since the end of the Lausanne Conference. All through the debt negotiations dur- ing the last month the British have been acting as “shock troops” of the debtor nations. They have sacrificed certain advantages which the American people would have gladly given Great Britain, alone, for the sake of a Euro- pean common front. Finally when the Department of State was giving a sigh of relief that the whole matter was disposed of sat- isfactorily and according to all indica- tions received rom the other debtors it was assumed those installments would be paid, this new British note came to jeopardize everything, should the British stick to their point of view that the payments must be considered as an advance on the future debt set- tlement. It is considered possible the British note was meant to ease the position of the French government, which is fight- ing a hard battle in_the Chamber this week, and as the British have been taking the initiative of opening the debt controversy they wanted to pave the way for France to follow their lead now and inform the Government of this country that the $20,000,000 due next Thursday will be considered as an ad- vance on the final settlement. It is asserted in well-informed quarters that it is only under this condition that the French Chamber would agree to make the December payment. Prompt Reply Praised. In the Senate today Senator Reed, | Republican, - of Pennsylvania praised the prompt manner in which the Amer- | ican Government dealt with the British | proposal, and saild: “I agree to every | word that was said by Secretary Stim- | son.” Representative Treadway, Republican, | of Massachusetts on the House floor | said the conditions proposed by Great | Britain were such that he, as a member | of Congress and of the Ways and Means Committee, which would have jurisdic- tion, would vote to decline to receive he payment if its acceptance involved agreement with the British position. He added that should Britain make unconditional payment, he felt “the | request of Great Britain for a fairly | prompt conference should be granted.” | == | Forty warders, a clerk, a doctor, a | chaplain and a governor comprise the | staff of the prison at Cork, Irish Free | State, which recently had one prisoner {in its hundreds of cells. ! * 3 :']'Sdle”"l Men’s vHa'nd»Tailored ject. The British government, State | Paym! MONDAY, DECEMBER 12, 1932.. Fext of U. S. ReRl‘y to Britain Stimson Voices Refusal to Accept Payment of Dec. 15 War Debts Installment With Reservations Attached. By 5 Associated Press. “ learn with satisfaction of the de- cision of your ‘government - ‘to make ent of the amount due on De- pember 15 under the funding agree- ‘ment of June 18, 1923’ But in view of the statement in your note that ‘in the view of His Majesty's government therefore the payment to be made on December 15 is not to be regarded as & resumption of the snnual payments contemplated by the existing sagree- ment,’ I must call attention to the fact that the Secretary of the Treasury has no authority to accept payment from your government except as provided under the terms of the funding agree- ment. “As T pointed out in my mnote of November 23, 1932, there is reserved to the Congress of the United States the ultimate decision in respect of the funding, refunding or amendment of these intergovernmental _obligations under consideration. The executive has no power to amend or alter them either directly or by implfed com- mitment. Accordingly, it should be understood that acceptance by the Sec- retary of the dered in payment of the December 15 installment cannot constitute approval of or agreement to any condition or declaration of policy inconsistent with the terms of the agreement. The sum so received must be credited to princi- pal and interest as provided therein. “I therefore assume that in para- graphs five and six of your mote you are not proposing to make this pay- ment otherwise than -in accordance with the terms of the funding agree- ment, but that you are stating your views as to steps which your govern- ment may desire to propose subse- quently after a re-examination of the entire problem. “I have emphasized these facts with a view to avoiding any possible future misunderstanding. I believe that our future course as pointed out by our correspondence is clear. “In your first note of November 13 you asked for an exchange of views at the earliest possible moment with respect to the regime of intergovern- mental financial obligations and, in your second note, you welcomed the expression of our willingness to facili- tate such discussions, and referred to the desirability of a close examination between our governments of the whole subject in preparation for the inter- national economic conference. In my last note of December 8 I replied that the President of the United States was prepared through whatever agency may seem appropriate, in co-operation with your government to survey the entire situation (in which the debt of the British government to the Uhited States necessarily plays a part) and to consider what means may be taken to bring about the restoration of stable currencies and exchange, the revival of trade and the recovery of prices. “But in the meanwhile, as I informed you in my note of November 23, great importance is attached by our Govern- ment and people to the maintenance of the original debt agreement in force and that a satisfactory approach to the whole question would be greatly in- creased by the pursuance of such a policy. “It would seem to me therefore to be undesirable. that:any steps be, taken which, by causing misunderstandihg, would increase the difficulties that must Nationally Famous CRAFT ® White ® Blue ® Green ® Tan ® Grey Collar-Attached Neckband in W hite Only! o The 3 for $2.00 We've sold an equal grade of ties at $1. Al of them are hand-tailored, and silk tipped. Large assortment of patterns. {Main Pioor, The Hecht Co, ¥ K PR JOHC Xk ) ain Hecht Co.) Floor Treasury of funds ten-| made on December 15 is not to bej ree garded as the rwl::du‘lnn of anfual ment have stated that in their opimion such p:'motm mflmaw, greatly increase a sal approach to hole question. o (6) His Majesty’'s government . pro- pose_accordingly fo treat thé payment on December 15 as a capital payment, of which account should be taken in any final settlement; and they are making arrangements to effect this pay- ment in gold as being in circumstances :;ut prejudicial of methods open to em. (7) This procedure must obviously be ;;c?pnt:ml and lh{omnl: nn‘d“‘yms ajesty’s government desire to urge upon the Uhited States Gm’ernm{l'iz the importance of an early exchange of views with the ohject of concluding the roposed discussion before June 15 hext to obviate the risk of a general break- down of e “intergovernmental agreement. be overcome in finding an ulf so{uuun satisfactory to both mut(‘)zl;u “Accept, excellency, the renewed surances of my highest considersifon.” Text of British Note. | BY the Associated Press. | | LONDON, December 12.—The com- | plete text of Great Britain's latest note 1 regarding the December 15 payment | of the war debts’ installment follows: | (1) His Majesty’s government, hav- ing received the note addressed to them by the United States Government on December 7, observe with satisfaction that the United States Government welcomes a suggestion for close exami- nation between the two countries of the whole subject dealt with in the British note of December 1. His Majesty’s gov- ernment feel it will be appropriate to reserve for this joint examination their comments on certain views expressed in the United States’ note of December 7, but they think it right to state that { after further careful consideration they see no reason to modify the general conclusions set forth in’their note of December 1. (2) His Majesty's government will therefore, in the present communica- tion, deal only with the last portion of the United States Government note which relates to the immediate question of payment on December 15. Majesty’s government observe that the United States Government recognize the difficulty of effecting transfer; but g:leny {;}mm& convinced that no solu- other than suspension coul - |ate Trtlhese aiiculties, e ey note therefore with profound regret that—notwithstanding gfzumems‘ contained in the Briitish note of De- | cember 1—the United States Govern- ment have decided not to recommend this solution to Congress. (3) In view of this decision His Majesty’s government have determined to make payment of the amount due on December 15 under the funding agreement of June 18, 1923; but they think it desirable to take the oppor: tunity of stating clearly their position in regard to this payment and of ex- plaining the circumstances in which they have arrived at that conclusion, (4) For reasons which have already been placed on-record, His Majesty'’s government are convinced that the sys- |tem of intergovernmental payment in | respect toward debts as it existed prior | to President Hoover’s initiative of June 20, 1931, cannot be revived without disaster. Since it is agreed that the whole subject should be re-examined between the United States of America and the United Kingdom this funda- further Plan Christmas Eve Carols! BOWIE. Md., December 12 (Spegial). —Outdoor carol € is planned here Christmas eve, members of the church choirs and others of the eom- munity interested are to rehearse in St. James’ Hall Priday night at 8 o'clock. —_— EISEMAN’S SEVENTH AND F SUITS 18 NOTHING DOWN Just Pay §$6 IN JANUARY $6 IN FEBRUARY $6 IN MARCH Come in, see for yourself, what great values thesq suits are at $18. Over 500 suits to make a selection from, all sizes, models and | i : ; mental point need not be istr(?)secxi he;e. n the view of His Ma, ' government, therefore, payment ’t.:tyh: REFRIGERATOR Autematic Control preserves food at correct te o ureet temperature. " Deliv- %10 casu - MUDDIMAN . 11 G St. Nat'l 0140-2622 Organized 1888 2, o X * X, Y o We've sold thousarids 6f them at a much higher price. They are those famious, smooth, soft-finished broadcloth shirts . . .-pre-shfunk by the Ever-fit process. Sizes 1315 to 18. Sleeve lengths, .32 to 36. Mail and Phone Orders\w,:Call District 9400! 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