FRENCH WAR DEBTS

Greymouth Evening Star, 28 August 1925, Page 5

FRENCH WAR DEBTS

GENEROUS BRITISH OFFER.

M. CAILLAUX WANTS MORE.

(Reuter.)

LONDON. Aug. 26

It is officially announced that the Government has authorised Mr Churchill finally to offer a settlement of the French debt on the basis of six-ty-two annual payments of twelve and a half millions sterling each, the payments to rest solely on the responsibility of France, the settlement to be siibject to an agreement as to the details and as to the governing conditions of the proportions for equal treatment by France and her creditors. M,. Caillaux has reserved his opinion of his proposals. He has promised to submit the British proposals to the French Government.

Mr Churchill, commenting on the official statement embodying the ofier. said that the negotiations have not been broken off.

M. Caillaux that Mr Churcbil’ has agreed to conse-de a partial moratorium until 1930. but lie- has only partially accepted the French demand. A stipulation which M- Caillaux expressed the opinion is essential to any arrangement is that the transfer of the annual payments should be suspended in the event of their threatening to disturb the exchanges. M. Caillaux also expressed the opinion that guarantees should be given to France the' she in no way should have to pay Allied and associated [lowers higher sums than she received from Germany. He remarked that the conversations had merely been interrupted; undoubtedly a final arrangement will be reached.

The terms of the British debt offer caused surprise and have evoked a sharp division of opinion in the London Press. Even the approval is confined rather to satisfaction at a good understanding than to the actual figure. The only unqualified enthusiasm emanates from M. Ciillnux. whom the political correspondents variously, describe as “delighted” and almost “chortling.” It required two Cabinet meetings to evolve the offer. Significant long conversations between Mr Chamberlain and Mr Hnuabfon preceded the first offer, while between the first and second. Mr Churchill had a lengthy conference with A" Caillaux, who received an unexpeefe summons bv telephone.

The “Daily Telegraph’s” diplomatic says:— The danger is that America will misconstrue this offer into a joint attempt to place her bi -•■n invidious position if she should decline to revise- her loan settlement with Britain and Belgium in accordance with the present Anglo-French conditions. Indeed, should America insist on a standard rate of three and a half per cent of interest on the French debt, the position created would be especially embarrassing for the British Government, which would be bound to raise the present two per cent to three and a half, at the risk of arousing clamour and indignation in France. Viewed in this light, the provisional agreement docs not strike one as either diplomatic or • advantag'uj.ns to Britain. American cilcles last night certainly ■ were inclined to resent the stipulation agreed to by Mr Churchill and M. Caillaux. It is understood the partial moratorium relates to a series of small graduated annuities starting at from two to three millions.

The “Morning Post” emphasises that the settlement is still contingent on the attitude of the United States, but though no conclusion has been reached, it must be recognised that the whole situation has changed for the better.

The “Daily News’’ expresses the opinion that the Government toQk The right course. This does not obscure the fact that no debtor in the world’s history has ever been so well treated. The ‘‘Times’’ says a settlement is Hi sight. It expressed no direct opinion on the amount, but stresses the importance of maintaining that any relatively larger French payments to America shall be automatically accompanied by similar payments to Britain. It says: “We have now to reckon with the possibility of finding ourselves in receipt of less than is required to meet our payments to Amer-

ica. The importance of this settlements affelts those of the other debtors, therefore it is difficult to avoid the conclusion that political claims, rather than financial considerations, weighed heavily with the Government, in order to dispose of a difficult question.

The “Daily Express’’ says:— “31 r Baldwin's settlement with America, is a grave and expensive blunder T'*i new surrender is a crying instance of a financial weakness, which is hardly creditable. The nation cannot afford the sacrifice.’’

AMERICANS UNMOVED. WASHINGTON, Aug. 26. Tlic developmmits in Hie .foreign debt situation abroad are regarded by observers here as likely seriously ro complicate the forthcoming negotiations for the funding of Ihe dems of Fiance and Italy to the Lidled States. While the officials arc loth to discuss the problem disclosed to-day, it is plainly evident that they expect I*rance to bring pressure for terms with . United Stales similar to those granted bv Great Britain to France.

It is learned,* on official authority, that France will be told that she owes the United Stales more- than she owed Britain, and that her annual payments must be greater. Another phase of the situation attracting attention is a report that it is apparently certain a delay will be made by the Belgians in taking parliamentary action on the funding pact with the United States. This delay .will not be fatal to the.agreement, but it is suggested that if earlier ratifications by Belgium were possible, i *ie atmosphere as it surrounds similar action by Congress, and bears on the French and Italian negotiations here would be materially cleared.

GREEKS SEEK SETTLEMENT.

ATHENS, August 27

The Government has cabled the Greek Minister in London, giving Ins definite authority to sign an agreement for a settlement of the Greek war debt.