FRANCE AND AMERICA.

New Zealand Herald, Volume LXIII, Issue 19311, 26 April 1926, Page 9

FRANCE AND AMERICA.

WAR DEBT liEPAYMENT. FRESH OFFER SUBMITTED. A SIXTY-TWO YEARS - BASIS. Ry Telegraph—Press Association —Copyricht. (Received 7.5 p.m.) A. mid N.Z.-Renter. WASHINGTON. Apl. 23 Tho French Government yesterday submitted a new offer for the settlement of its war debt of £800,000,000 to the United States. The offer was made at the first of a series of formal meetings between the United States Debt Commission and the French Ambassador, 111. Berenger. It is now being considered l>y the commission. There are definite indications that the new offer goes further toward meeting the demands of America than that made by the unsuccessful mission led by M. Caillaux htst summer. The 68 years' settlement programme advanced by M. Caillaux at that time is understood to have now been reduced to a 62 years' term, on the basis of the agreements made with other debtor nations. It is understood that France does not insist upon a guarantee clause to relieve her of payment in the event of Germany failing to meet her reparation obligations. France is also understood to be ready to pay £5,000,000 a year, including this year, and to graduate her payments up to £20.000,000 a year so as to meet the full debt. The new offer from France was a contributing factor to spectacular rallies on the stock and bond markets to-day. Scores of stocks rose from one to 12 points and sales exceeded 2,500,000 shares. Record dealings in bonds took place and reached tho highest levels recorded for several years, Tho Senate has refused to reconsider its approval of tho Italian debt settlement, The agreement will therefoie come into force when the President, Mr. Calvin Coolidge, has signed it.