462.00R296A/6: Telegram
The Chargé in France ( Howell ) to the Secretary of State
[Received November 4—6 p.m.]
710. The following communiqué was issued to the press yesterday afternoon after the meeting of Laval, Briand, and Flandin with the German Ambassador:41 [Page 338]
“Monsieur Laval gave account to Herr von Hoesch of the conversations which he had with President Hoover relative to the substitution of the normal regime of the Young Plan for the present moratorium resulting from the proposal made last June by President Hoover.”42
Although it is obvious that this communiqué is vague I understand that the following is the substance of the conversation:
As indicated in the communiqué, Laval outlined in a general way the conversations he had had with the President. The discussion, however, centered chiefly on the question of the contemplated examination of the future capacity of Germany to pay reparations and the form which this examination should take. Laval emphasized in this respect the present viewpoint of President Hoover and himself that future courses concerning reparation obligations should be carried out within the Young Plan framework. The German Ambassador in connection with this examination called attention to the “restrictive” terms of reference contained in part 8 of the Young Plan which relates to the powers of the Advisory Committee. The Ambassador explained his Government’s point of view that under the present circumstances these terms were not appropriate. Paragraph 125 of part 8 was mentioned in this connection, this paragraph providing that “the expenditures [committee?] shall play no part in connection with the unconditional annuity accepted by Germany and referred to in the Plan as the ‘unconditional’ annuity.” To this Laval replied that according to the view of his Government a report on the situation of Germany could be rendered by the Committee, since the terms of reference in question were sufficiently large to permit its doing so. The interested Governments could thereby make a decision as to the future payments to be required of Germany. It was made clear to the German Ambassador that the French Government is awaiting a sign from Germany as to its intentions relative to the position it will take after July 1 on its reparation obligations.
Ambassador von Hoesch was also given to understand that the commercial obligations of Germany were to continue to be subordinate to the political obligations of that country.