WAR DEBTS OF FRANCE.

New Zealand Herald, Volume LXIII, Issue 19376, 10 July 1926, Page 11

WAR DEBTS OF FRANCE.

PAYMENT TO BRITAIN. NEGOTIATIONS REOPENED. EARLY AGREEMENT EXPECTED. By Telegraph—Press Association— Copyright. (Received S p.m.) A. and N.Z. LONDON. July 9. The diplomatic correspondent of tho Morning Post says negotiations for the funding of France's war debt to Britain have been carried on by Mr. Winston Churchill, Chancellor of the Exchequer, and M. Pouyanne, financial adviser of France iu London. The negotiations are progressing favourably on the basis of the preliminary agreement entered into with M. Caillaux, Minister of Finance, in August last. This agreement provided for annual payments of £12,500,000. M. Peret,_ who became Minister of Finance, after this agreement was made, accepted the principle of M. Caillaux's proposal, so the present conversations chiefly concern technical details. Before the end of the month M. Caillaux should be in a position to come to London to sign an agreement. Though a preliminary agreement was reached by M. Caillaux last August changes of Government in France deprived him of office, but in a recent reconstruction of the French Cabinet, he was again given the portfolio of Finance. He is therefore now in a position to complete the negotiations which he commenced with the British Chancellor last year. In August, after considerable negotiation, the British Government authorised Mr. Churchill to accept a settlement of France's war debt on a basis of 62 annual payments of £12,500,000. Originally Britain sought annual payments of £21,000,000, which brought a counter-offer from France of £13,000.000 or £14,000,000, and eventually Britain made concessions to enable the amount to be fixed at £12,500,000.