Whole Question May be Raised by First Move Washington, May 4.
With war clouds again hovering over Europe, Rumania yesterday formally proposed a settlement of her $64,000,000 World War debt to the United States.
The Rumanian Minister to Washington, Mr. Radu Irimescu, delivered his country's formal proposal to the Secretary of State, Mr. Cordell Hull. Details of the Rumanian proposal were not revealed.
The move resulted in widespread speculation here regarding the poss bility that Britain, France and other European nations who have nem ignoring their debts to the Unitea States during the quiet years fol'owing the war, would now low Rumania's lead in seeking a setts-ment.
Observers pointed out that the Johnson Act prohibits the extear'on of American loans or credits to European nations which have defaulted on their present debts to the United States. Some quarters believe the European nations in debt to the United State will seek an early settlement of the debt question, now that the threat of war again faces Europe. These nations, it is believed, are anxious to have access to American loans and credits in the event of another European war.—United Press.
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