In default of a Conference Germany must be told by
her several creditors in due time that the moratorium proposed by Mr. Hoover is again prolonged for her. Here we would warn France that the longer the moratorium is prolonged, the less likelihOod there is of the payment of any Reparations at all being re-imposed. We should strongly prefer complete deletion at once, but we are not convinced that Germany will never be able to pay anything-; and if France can make a good case in the statement which she is preparing about the expenditure upon the devastated areas, showing that damage done by Germany has not yet been paid for by Reparation payments, we could not deny her some right if she per-
sisted in demanding some farther payments, much as we should deplore it. Biit definite and permanent arrangements of that kind can only be settled by such a conference as was held at the Hague when the Young Plan was adopted, and as we hoped might be held at Lausanne this month.
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