FRANCE'S LOANS.

Auckland Star, Volume 55, Issue 22, 26 January 1924, Page 7

FRANCE'S LOANS.

» ~ i QUESTIONED BY I/OEUVRE. HEED GIVEN TO AMERICA. (From Our Own Correspondent.) LONDON, December 7. The election has temporarily obscured all other issues, but one has still time to note an important turn of affairs in Paris. M. Poincare, allegedly less trucculent to us because he hoped to help Mr. Boldwin in his fight, is .being persuaded, according to the "Journal," to this line owing to pressure from Belgium. Yesterday we "had President Coolidge's pronouncement and its further repercussions in Paris. The French Government is proposing to lend £5,000,000 to Poland. £3,750,000 to Yugo-Slavia, and £1,250,000 to Rumania. Before the members of the Foreign Affairs and the Finance Commissions, M. Poincare gave an exposition, from the threefold point of view of,. diplomatic, military, and financial considerations, of tbe conditions in which his Government, and that of M. Briand had been led to propose these advantages to the French Parliament. He made it clear, in particular, that the commercial orders contemplated will be carried out exclusively in France, by the State establishments, or by French industrial firms under the supervision of the international .ervico for expenditure abroad, which forms part of the M ; ..istrics of War and Finance. He also furnished proof of the reality of the pledges and guarantees of repayment of the advances by the States concerned. Commenting on thiß, L'Oeuvrc says:— Let it be noted that, according to the communique itself, keen opposition has been raised against these loans, which are at least inopportune. It is known that they furnish the principal motive of the United States in asking us for the total payment of our debt—"Since you arc so rich, pay us your debts." Our Budget is not in a condition to provide for this expenditure, which is not only excessive, but unduly costly, for the latest French loans issued as Treasury bonds, denominated 0 per cent, cost the State in reality from 8 to 9 per cent interest. Let us recall that it is' not a question only of Poland, Yugo-i .lavia, and Rumania. A loan to Hun-1 gary is also spoken of. Others will i follow. M. Berenger has himself told us that it is a question of a total loan of 1,400,000,000 francs ( £17,500,000). The "Journee Industrielle" admits that they liave reached a "turning point" in French foreign policy. It says:— | "The English elections are taking i place. Whatever their result our ioreign policy will at once find itself faced with a stiff game. The attention of our Parliamentary world will turn away from the Ruhr to the inter-Allied negotiations. Needless to say, in this field the Opposition parties will not maintain the reticent ~_ttitude that they have observed with regard to the Ruhr. The combat will become serious between the policy of Cannes and that of M. Poincare. The majority in the Chamber, which lias faithfully supported the Government, will be exposed to many surprises. Skilled hand, are strewing orange peel. M. Poincare can spare himself and his majority this risk only 'if he issues in time a positive plan for inter-Allied policy around which that majority can rally. "-M. Poincare therefore can only save himself by anticipating M. Briand in the restoration of the entente with England and Italy." "Le Journal" indeed asserts that M. Poincare, in order to throw the maintenance of L'Entente Cordiale into the electoral balance, has made "numerous concessions," i.e., to the English Government.