FRANCE AND AMERICA.

New Zealand Herald, Volume LXI, Issue 18814, 15 September 1924, Page 7

FRANCE AND AMERICA.

WAR DEBT REPAYMENT.

SIXTY-SEVEN INSTALMENTS

NOVEL SCHEME PROPOUNDED.

By Telegraph—Press Association— Copyright. (Received 5.5 p.m.) A. and N.Z. WASHINGTON. Sept. 13. A plan for the liquidation of the 3,500,000,000 dollars French war debt to the United States has been 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. Hoover, Secretary of Commerce, who are also members of the commission. The plan provides for a full repayment by Franco 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 French industries, including railways, water power projects, public utilities and electrical development. Tho second is that the United States should grant France a five years' moratorium, during which period interest otherwise chargeable against France should not be cumulative, Mr. Hurley's plan is 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 Germany. It is also believed that it will stabilise tho franc against the adversities of speculation.