U.S. TO STAND ALOOF

Dominion, Volume 25, Issue 99, 21 January 1932, Page 9

U.S. TO STAND ALOOF

Problem of War Debts OUTLINE OF ATTITUDE Pleas from Debtor Powers * . . EACH ON ITS MERITS” By Telegraph—Press Assn. —Copyright. (Rec. January 20, 8 p.m.) Washington, January 19. With the announcement of the lubstltution of the Secretary of State, Mr. H. L. Stimson, for General Dawes, retiring Ambassador to Britain, to lead the American delegation to Geneva on the eve of that delegation's departure, a semiofficial outline of the American attitude toward reparations, especially as related to disarmament, has been given to the Press.

President Hoover on Tuesday selected the retiring Ambassador to Britain, General Charles Gates Dawes, as head of the new two billion dollar Reconstruction Corporation. America’s reply to European ov ® r " tures seeking advice on war debts will be that Europe must work out her own plan. America’s part at Geneva will be “silent though Influential,’’ since she believes that the questions to be discussed there primarily are European questions. The United States will take no part in the Lausanne Reparations Conference, but will consider carefully any concrete plan proposed for the further postponing of war-debt payments, or other concrete arrangements to \ meet the present emergency. It is intimated that the Ambassador to France, Mr. W. E. Edge, has Informed the French Premier, M. Laval, in reply to “feelers,” that the United States would consider each nation's debt qn its merits, and does not believe that the debt problem is immediately pressing because no payment Is due until December 15. “To Grin and Bear It.” A summary of American newspaper opinion of the present state of the reparations and war debts situation seems to be expressed by a leader In the Springfield (Massachusetts) “Daily News.” “It is increasingly apparent that Germany intends to repudiate her debts,” says the article. “ This situation augurs ill for American taxpayers, who have no alternative but to grin and bear it.” The New York “World-Telegram” says: “Politics, the curse of the Issue from the beginning, are now making a bad matter worse. t "The Lausanne Conference probably will patch up a temporary compromise agreement, then run away from the problem until it catches up with them again in a worse form—and America is not to be represented. “America should enter the conference with a definite programme, recognising that the reparations and debts will never be paid.” Must Be Done Quickly. The New York "Post” says: “Whatever is done at Lausanne must be done quickly. The combination of a long .conference, political unrest, and the approaching elections in the United States, France, and Germany would be highly dangerous.” The “New York Times” says: “The high variability of the German capacity to pay partly explains the French reluctance to adjourn sine die. Today they argue that Germany cannot pay, but there is no telling about two years from now.” Probable Congress Attitude. The Hartford (Connecticut) “Times” states: “The Congress is likely to be lenient with the debtors who expect to pay, and likely to show no such disposition toward those debtors who proclaim and hope eventually to avoid payment. “A further moratorium, granted on condition that it would not hinge upon the piiyment of German reparations should cause the debtors to cease their talk of cancellation as a moral right.” The “Boston Traveller” remarks: “The news telling oF the importance of Herr Hitler seems to be overdrawn. We suspect that Berlin parades him to worry Germany’s creditors into concessions hardly due to the loser in a selfstarted war that nearly wrecked civilisation.” DEBT CANCELLATION “Panacea Sans Penitence” FRENCH PREMIER’S VIEW Paris, January 19. M. Laval’s declaration on the occasion of the appearance of his new Ministry asserts that the cancellation of war debts and reparations was a “panacea sans penitence,” emanating from imaginative theorists who had not faced the facts. France would not accept solutions which were Inadequate to solve the crisis and which struck at her essential interests and rights. She had to fulfil a duty of probity toward the generation surviving the war. She would sacrifice no credit without a corresponding remission of her own debts. . She had also a duty of prudence toward the future generation by subordinating any agreement to justly balancing the conditions of production. The existence of such a balance would be broken if after the crisis disproportionate fiscal financial burdens handicapped France Ln international competition. France’s policy was a, defined In the memorandum of July 15. EXTENDED “HOLIDAY” Possibility of Agreement London, January 19. According to a semi-official statement Issued in Paris, Britain and France are on the point of agreement regarding the desirability of the renewal of the moratorium by Germany for six or twelve months from its expiry in July. The feeling is strengthening that a definite solution of the problem is not obtainable at present, especially In view of thp elections in France. Germany and the United States. Naturally America’s debtors, who are also creditor* of Germany, jointly reqaMt

Identical treatment from the United States.

If a diplomatic agreement is reached on these lines the Lausanne Conference will become superfluous, or might be attended by experts only. M. Laval, the French Premier, yesterday had a conference with the German Ambassador, it is believed with a view of securing Germany’s assent to this solution. It is stated in several quarters that Mr. Ramsay MacDonald may not go to J/ausanne, partly owing to its diminished Importance and partly owing to the pressure of Home affairs. BRUENING ATTACKED Cause of German Insolvency Berlin, January 19. Herr Hitler’s memorandum, explaining his refusal to agree to a prolongation of President Hindenburg’s term of office by Reichstag vote, attacks Dr. Bruening and argues that his regime has reduced Germany to insolvency and international impotence.