FRENCH DEBTS

Hokitika Guardian, 1 July 1929, Page 5

FRENCH DEBTS

ANOTHER. CRISIS. (United Press Association—By Electric Telegraph—Copyright). (Received this day at: 9.25 a.rri.) LONDON, June 30. The French Chamber will hold a debate on the ratification of war debts on 9th July. It is recalled that shortly after the war, America offered'to sell France all the war material United States then bad in Europe, for .eighty millions sterling, stating that if it were not sold it would either be. sent to America or destroyed on the spot. France badly needed much of the material, therefore Koltz, then Finance Minister, who is now in prison on charges of fraud, concluded what proved a Ibad bargain for France. America last month agreed to absorb this eighty millions into the Franco-American debt, funding and ratified an agreement known as the Mellon-Berenger agreement provided France ratified the agreement by Ist August. France wants to soo the Young plan adopted first, hut America declines to wait. Franco faces another complication arising from the fact that under the London agreement 'of July," 1926, debt payments to Britain must riot he inferior to those to America^'Therefore if France pays America eighty millions she must pay Britain a similar amount. No doubt a way will, he found out of the impasse hut it is not obvious at present. >