RUMOURED OFFER.

Auckland Star, Volume LXIV, Issue 109, 11 May 1933, Page 7

RUMOURED OFFER.

WAR DEBT PAYMENT.

France Will Reject Reported American Proposal. WAIT AND SEE POLICY. (United P.A.—Electric Telegraph—Copyright) LONDON, May 10. The Paris correspondent of the "Daily Mail" says America has tentatively offered to fund the French war debt at £300,000,000, instead of £.800,000,000 as arranged under the Mellon-Berenger agreement of 1926, £72,000,000 in gold and £12,000,000 in silver to be payable immediately, and the remainder in instalments to the Bank for International Settlements.

The proposal is certain to be rejected, says the correspondent. It is emphasised that the maximum amount recoverable from Germany under the Lausanne agreement is £108,000,000, which France is willing to pay to America when it is received, but she will not pay one pound moz - e than is received. Although M. Herriot is urging the payment of the December instalment, the Cabinet will refuse to do so until a moratorium on the June payment is assured. Also, it will decline to make any payment in gold. Another correspondent says that the French. Cabinet, with one eye on Washington and the other on Berlin, meets and marks time. It is rumoured that the United States has made a debt offer to France, namely, her interest to be cancelled and her debt reduced to the capital alone; 30 per cent to be paid immediately in gold and silver. The balance to be in annuities spread over 50 years, or it might be commercialised in the form of an international loan.

MAY YET BE SAVED.

America's Move at Disarmament

Conference.

SECURITY PROPOSALS. LONDON, May 10. Mr. Roosevelt's special envoy to Europe, Mr. Norman Davis, is due in Geneva this week and is cxpected to produce definite proposals by the United States regarding security. Should these prove acceptable to France and should there be a change in the attitude of Germany, the Disarmament Conference may yet function with beneficial repercussions on the debts question and the World Economic Conference.