FRANCE’S DISAPPOINTING NOTE

Dominion, Volume 24, Issue 231, 26 June 1931, Page 9

FRANCE’S DISAPPOINTING NOTE

Modification of Hoover’s Moratorium Plan NOT ACCEPTABLE IN PRESENT FORM President Hopeful of Reaching: a Compromise UNITED STATES READY TO DISCUSS DETAILS (United Press Association.—By Electric Telegraph.— Copyright.) (Rec. June 25, 8.30 p.m.) 1 Washington, June 24. The French Note on reparations received to-day so modifies President .Hoover’s proposal for one year’s suspension of war-debt payments as to appear disappointing and unacceptable hi its present form. It is understood that France wants the non-postponable reparations annuities to be paid into the World Bank and the money loaned back to Germany. France wishes no precedent set for the suspension of the Young Plan. President Hoover’s advisers, however, are inclined to believe that a compromise will be reached assuring the putting into effect of the proposed moratorium. The Secretary of State, Mr. H. L. Stimson, says that the broad outlines of the moratorium proposal will not be departed from. He adds, however, that substantial headway is being made hi diplomatic negotiations “to work out many details which must necessarily be adjusted in so large a subject.” Tin's is regarded as a friendly gesture toward France, indicating that America will agree to some change in the details if the basic nature of President Hoover’s proposal is accepted.

The State Department has been informed by the United - States Ambassador in Italy, Mr. J. W. Garrett, that the Italian acceptance of President Hoover’s moratorium proposal was cordial and complete and without reservations of a political nature. FRENCH ACCEPTANCE How Situation Was Eased PRESS OPINIONS DIFFER / ■ Paris, June 24. France has accepted the moratorium proposal with reservations on unconditionaT annuities. The atmosphere was appreciably eased by the American Ambassador’s assuring the Premier, M. Laval, that the urgency of the German crisis forced President Hoover’s hand. There was no intention to overlook France, which was actually the first country consulted from Washington, he said. M. Briand, the Foreign Secretary, in the morning had a conference with the German Ambassador, after which the French reply was cabled to Washington. Meanwhile the Press unanimously insists that France must not agree with the violation of unconditional payments, which are sacrosanct under the Young Plan. Spirit of Generosity. Doubtless due to the complexities of the issue, there is a striking difference of opinion in the French newspapers, which nevertheless unite in expressing gratitude to the spirit of generosity animating President Hoover’s proposal. M. Jules Sauerwein, in the “Matin,” says that admiration for President Hoover’s move would be boundless If he confined himself to stating that the United States would forgo a large sum without telling the other nations what attitude to take. “Le Journal” says that the fine act of courage in President Hoover’s gesture has raised the principle of the general economic situation, and j .titles the suspension of all financial war settlements. DAWN OF PROSPERITY Confident Belief in. Paris BETTER FINANCIAL TONE (Rec. June 25, 7.30 p.m.) Paris, June 25. Quotations on the Bourse continue to soar. The explanation appears to lie in the confident belief that the French reply to President Hoover will not invalidate the Young Plan; also the. real era of prosperity about to dawn. Advices from Berlin indicate that there is only slight surprise at France’s conditional acceptance. This, was fully anticipated by the Press. LOAN TO REICHSBANK Total of Twenty Millions (Rec. June'2s. 9 p.m.) London, June 25. The “Daily Telegraph” says the Banks of England and France, the Federal Reserve Bank, and the International Bank have lent the Reichsbank £20,000,000 to meet payments due at the end of the month. TROUBLES NOT ENDED Advice to German People London, June 24. “The Tinies” Berlin correspondent gays that Dr. Bruening, the German Chancellor, in a broadcast, expressed the Government's gratitude at President Hoover’s proposal, but warned the German nation that the American plan would not end all Its troubles. The Government had resorted to hard measures, and would stick to them, because even without reparation payments, exceptional efforts would be required to get through the next eighteen months. fie would welcome the opportunity of discussing the whole position with French statesmen. , ITALIAN AGREEMENT Emphasising the Sacrifice Rome, June 24. Signor Mussolini has telegraphed to the Italian Ambassador at Washington iustructlng hfia to announce Italy’#

readiness to accept President Hoover’s proposal. According to a London message “The Times” Rome correspondent says that the reply to President Hoover declared that the proposal involves notable Italian sacrifices which Italy proposes subsequently to bring to America’s notice. DOMINION PAYMENTS Britain Will Forego Them SACRIFICE IS WORTH IT British Wireless Rugby, June 24. In the House of Commons,'Mr. Philiii Snowden, Chancellor of the Exchequer, stated that the Government was offering the Dominions and India the same war debts concessions as President Hoover proposed for foreigners. Mr. Snowden added that he felt that he was interpreting the country’s wishes in freely deciding to offer the Dominions the option -of postponing the whole of their war debts payments to Britain for a year, beginning July 1 next. This would mean a budgetary loss of approximately £11,000,000, but he hoped that the revival of confidence and prosmore than justify the sacrifice. “Very Great Gesture.” The Chancellor, in the course of his speech, said: “I should like to take this opportunity of explaining the steps we have decided to take for this purpose. The more consideration we give to the President’s declaration, the more it seems to us that, having regard particularly to the history of the matter, that declaration constitutes a very great gesture on the part of the United States of America, and it will be a thousand pities if Europe does not respond to' it In the same spirit. “Tne beneficial effect of the proposal may be lost unless steps are taken by all the countries concerned to give it prompt and practical effect. This Is particularly the case as regards Germany. which, after all, is the essential difficulty. “We agree with the view expressed by the United States Government that there is no time for a conference. The procedure which we would favour is that creditor Governments should forthwith notify the Bank for International Settlements that they agree to the proposal for a suspension for one year of all German payments due to them. In Spirit and Letter.. “President Hoover’s proposal applies, however, to all inter-Government debts, reparations, and relief debts. His Majesty’s Government for its part accepts this proposal in the spirit as well as in the letter. “It will accordingly be ready to suspend for one year all such interGbvernmental debts due to it as soon as President Hoover’s proposal has been generally accepted, and in the meantime as from July 1, it will refrain from claiming instalments that may fall due. , “As regards relief debts his Majesty s Government is at once taking steps to inform other European Governments which hold relief bonds of its action, and to invite them to co-operate. “Finally, although his Majesty’s Government in the United Kingdom does not regard President Hoover’s proposal as directly affecting the war obligations of the Dominions and the settlement between those of his Majesty s Governments concerned, we felt that we should be interpreting the wishes of the country in deciding freely to offer to the Dominions and India the same concession as is proposed for foreign countries under the same conditions. Opposition’s Approval. Following Mr. Snowden’s statement, Mr. Stanley Baldwin, on behalf of the Conservatives, said that he would content himself with saying that the Government had taken a course fully consistent with the dignity and reputation of our country. " Mr. Lloyd George said that he was very glad the Government had riven this complete courageous and unequivocal answer to the very noble gesture of the United States. Replying to Sir Austen Chamberlain, the Chancellor said that he would make a statement. later as to how the budgetary position in this country would be affected by the Government's policy. EXAMPLE TO OTHERS Praise for British Action (Rec. June 25, 7.30 p.m.) London, June 25. “The Times,” in a leader, says: “Though the internal war debts of the Empire hitherto have been regarded as purely a domestic matter, the Government very properly has refused to tieat the Dominions with less generosity than she is treating her foreign debtors, making a total sacrifice of £11.000,000. '■> “This is not a bad example to set the debtor nations.” “Nobody in this country will grudge such a gift to our great Dominions for such a cause,” says the “Daily Mail” in referring to Mr. Snowden’s statement. Tb-a “Nawa-Ohronicie” su.y« that Mr.

Snowden’s courageous and wise announcement will be received with satisfaction and relief in the Dominions find will be endorsed here. At. the same time it is necessary to recognise that it will involve a mew burden on the British taxpayer. NEUTRALITY TREATY Russia and Germany Sign Moscow, June 24. A Soviet-German* Treaty of Neutrality has been signed, replacing the five years’ treaty, which expires on June .28. It mutually pledges both countries to observe neutrality in the case of attack by a third Power. Each promises not to join hostile coalitions or economic or flnancial'boycotts against the other, either in peace time or in war time.