ANGLO-FRENCH DEBTS

Hokitika Guardian, 28 August 1925, Page 1

ANGLO-FRENCH DEBTS

[Australia it N.Z. Cable Association.] LONDON. Aug. 26. k is officially announced that the Government, lia-s authorised Air AA r . Churchill finally to offer a. .settlement of the French debt on the basis of sixty two annual payments of twelve and a-half millions sterling each, the payments to rest solely on the. responsibility of France, the settlement to he subject to an agreement as to the details and as to the governing conditions of the. proportions for equal treatment bv Franco of her creditors. Af. Caillaux has reserved his opinioi of his proposals. Ho has promised to submit the British proposals to Hu’ French Government. Air Churchill, commenting on the official statement, embodying the order. said that the negotiations have not been broken off. Af. Caillaux, in a statement, says that Afr Church ill has agreed to concede to a partial moratorium until 1930 but, has only partly accepted the French demand. A stipulation which At Caillaux expressed the opinion as essential to any arrangement is that the transfer of the annual payments should lie suspended in the event of their threatening to disturb the exchanges. AI. Caillaux also expressed tho opinion that guarantees should he givi n to France that she in every way should have to pay Allied and associated powers higher sums than she received from Germany. He remarked that lhe conversations had merely been interrupted. Lie said that undoubtedly a filial arrangement will bo reached. LONDON DRESS CRITICAL. LONDON, Aug. 27. Tlie terms of the British debt offer have caused surprise and have evoked a sharp division of opinion in the London Dress. Even the approval is confined rather to satisfaction at a good understanding than to the actiid figure. The only unqualified enthusiasm emanates from At. Caillaux, whom the political correspondents variously describe as “delighted” and almost- “chortling.” It required two Cabinet, meetings to evolve the offer. Significant long conversations between Air Clinlinlte.rlain and Air Houghton preceded the first offer while between the first and second ATr Churchill had a- lengthy conference with AI. Caillaux, who received an unexpected summons hy telephone. The “Daily Telegraph’s” diplomatic correspondent says;—The danger* is Dial America will misconstrue this offer into a, joint attempt to place her in an invidious position if she should decline to revise her loan settlement with Britain and Belgium in accordance with the present AngloFrench conditions. Indeed, should America insist on a standard rate of throe and a half per cent, of interest and a half per cent, of interest on tin French debt, tbo position created Mould be especially embarrassing for ihe British Government, which would I • bound to raise the present two pet cent-, to throe and a half, nt.tho i isk of arousing clamour and indignation in Franco. Viewed in this light, ihe provisional agreement does not sii ike one as either diplomatic or advantageous to Britain.” American circles la-1 night orrtninlv were inclined to resent t lie stipulations agreed to by Air Churchill and AI. Caillaux. ft is understood the partial moratorium relates to a series of small graduated annuities starting at from two to three millions. The “.Morning Rost” emphasises that the settlement- is .still contingent on the attitude of the United States, tint though no conclusion has been reached, it must be recognised that the mhole situation lias changed for the hotter. The “Daily Telegraph’’ makes no comment. The “Daily News” emphasises tho opinion that the Government took tho right course. This does not obscure tin fact that- no debtor in the- world’s history ever has been so well treated. The “Time-:” says a- settlement is ii, sight. It expressed no direct opinion on ilie amount hut stresses the importance of maintaining that any relatively larger French payments to America shall be automatically accompanied hv similar payments to Britain. It, says: - “We have now to reckon with the possibility of finding oursclvc- in receipt- of less than is required to meet our payments to America. Then the importance of this .settlement effects those of the other debtors. Therefore it is difficult to avoid tin; conclusion that political claims anc financial considerations have weighed heavily with the Government. Thus in order to dispose of a difficult- question." The “Daily Express’’ says: —“Mr Baldwin’s settlement with America is a grave and expensive blunder. This new surrender is a crying instance of a financial weakness, which Is hardly creditable. The nation cannot afford Hit- sacrifice."

AAIF.II ICAX CONCERN. WASHINGTON. Aug. 20. The developments in the foreign debt situation abroad are regarded by observers here as likely seriously to complicate the forthcoming negotiations for the funding of the debts of France and Italy to the United Slates. While the officials are loth to discuss the problem disclosed to-day. it is plainly evident that tliev expect France to bring pressure for terms with the United States similar to those granted by Great Britain to F ranee. It is learned, on official authority, that France will he told that she owes the United States more than she owed Britain, and that her annual payments must ho 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 talcing parliamentary action for the funding pact with tiie United States. This delay will not he fatal to the agreement, but it is suggested that if earlier ratifications bv Belgium were possible, the atmosphere as it surrounds similar action by Congress and bears on the French and Italian negotiations here would he materially cleared.