AMERICA AND FRANCE.

Auckland Star, Volume LV, Issue 219, 15 September 1924, Page 5

AMERICA AND FRANCE.

REPAYMENT OF DEBTS. U.S.A. INVESTMENT IN FRANCE. WASHINGTON, September 14.- - A plan for the liquidation of the' 3.500,000.000 dollars French war debt to the United States has b;.-en prepared by Mr. Edward Hurley, formerly chairman of the Shipping Board and a member of the American Debt Funding Commission. Mr. Hurley .recently returned from France, where he obtained an unofficial endorsement of his plan. Since his return Mr. Hurley has been conferring with Mr. A. W. Mellon. Secretary of the Treasury, and Mr. H. C. j Hoover, Secretary of Commerce, who are also members of the commission. The plan provides for a full repayment by France in 67 annual payments ' of 100,000,000 dollars each, the rate of interest to be fixed by the negotiators. Two novel features are proposed. • The first is that the United States should invest half of each annual payment during the first 25 years in sinking fund gold bonds of" private Frencli industries, including railways'* water power projects, public utilities an'l electrical development. The second is that ,the TTnited States should grant France a fire years' moratorium, during which period interest otherwise chargeable against France should not be cumulative. Mr. Hurley's plan id believed to have the approval of the United States Administration. It is asserted that it is likely to do for a French commercial and industrial revival what the Dawes plan will do for Germaiiv. It is also believed that it will stabilise the franc against the adversities of speculation.—(A. and N.Z. Cable.) * j