EUROPEAN PEACE

Wanganui Chronicle, Volume 76, Issue 109, 11 May 1933, Page 7

EUROPEAN PEACE

SECURITY FOR FRANCE UNITED STATES PROPOSALS EXPECTED ANNOUNCEMENT RUMOURED WAR DEBT OFFER (By Telegraph—Press Association—Copyright) Received May 10, 11.20 p.m. LONDON, May 10 Mr Norman Davis, special American delegate, is due at Geneva this week. He is expected to produce definite proposals by tho United States regarding security. Should these prove acceptable to Fiance, and there is a change in the attitude of Germany, the Disarmament Conference may yet function with beneficial repercussions on the debts question and the World Conference. The French Cabinet, with one eye on Washington and tho other on Berlin, meets and marks time. It is rumoured that the United States made a debt offer to France in which her interest was. cancelled and tho debt reduced to capital alone, 30 per cent, to be paid immediately in gold and silver and the balance in annuities spread over 50 years, or in a commercialised form of international loan. AMERICAN OFFER FRANCE WILL REJECT IT Received May 10, 11.5 p.m. LONDON, May 10. The Daily Mail’s Paris correspondent states that America has tentatively offered to fund the French war debt at £300,000,000 instead of £BOO,000,000 arranged for in the Melton-Ber-engaria agreement of 1926. Seventytwo millions in gold and £12,000,* 000 in silver will be payable immediately and the remainder in instalments to the Bank of International Settlements. The proposal is certain to be rejected, as it is emphasised that the maximum amount recoverable from Germany under the Lausanne agreement is £108,000,000, which France is willing to pay America when received, but not a pound more than is received. Though M. Herriot is urging payment of the December instalment, Cabinet will refuse until a moratorium for the June payment is assured. Cabinet will also decline any payment in gold. NEGOTIATIONS PLANNED MR. C. HULL’S STATEMENT. LONDON OR WASHINGTON WASHINGTON, May 9. Mr. C. Hull (Secretary of State) said to-day that it was expected to carry on war debt negotiations during the time of the World Economic Conference, but to conduct them independently of its sessions. Mr. Hull added that it had not been decided yet whether these negotiations would take place in London or through diplomatic channels in Washington. Asked whether this plan for discussing war debts simultaneously with the Conference would not require special powers from Congress, Mr. Hull said that the negotiations could be conducted without such a resolution, though in that case definite commitments could not be made.