The New York herald., 1922-05-18
FRANCE Is PLEASED
BY AMERICAN NOTE
Continued from First Page.

Immediately fits In with the original
French concepion regarding the whole
European problem that was TO have
been discussed at the Genoa conference,
namely, that without a settlement OF
this question of the debts owed to Amer
lea no progress could be made in purely
European issues, including Russia. TO
which no European country could pledge
assistance without knowing when and
how she should pay her American debt.
Behind the brief note sent to WASH
irgton asking when the French commits
sion could be received, II was explained
to-day, lies a desire on the part of the
French Government to expose Its
finances from top to bottom to Amer
lean representatives. including an ex-
planation OF its military expenditures
and the interdependence OF the French
debt to America and Germany's repara-
tions obligations, and to let the United
States then decide what 1t had better do
for it's own interests as we'll as those OF
Europe.
I'VE consider the problem Of how and
when France will be expected to pay the
interest on her debt to America OF
primary Importance" high finance Of
ficial said this afternoon. Interest
forms vital factor in all French bud
=
the refunding of the debt is to cover a
long period of. say. 25 years. But some
time it will be necessary for France tc
have some assurance of what the Ameri-
can attitude will be II Frances expec.
tations as far as receipts from. say, Ger
many and Russia, fail TO materialize
fully.
I'VE are confident that our resources
will convince the American commission
that we are not bluffing as far as our
intention to pay is concerned, and we are
ready to reveal everything and lay all
the cards on the table as far as interior
and exterior finances are concerned
Moreover, we are anxious to give tho
American Government reliable officia
data regarding the financial situation
so that there may be no mistake arising
from any reports returned by the allied
or neutral bankers participating in the
Morgan commissions deliberations. oil
even from private investment bankers
who are now touring France
The same authority expressed rcgrei
that already a misunderstanding wai
arising due to the reports sent to tn,
United States regarding Frances mill
tary budget for 1923 presented to the
Chamber commissions yesterday by M
Lasteyrie. Minister of Finance.
Explains budget Increase.
"It Is quite true" he said, "that, dc.
spite a reduction in military forces
there Is an increase OF a few hundred
million francs. but that is easily ex.
planned. Besides revising the army sys.
tenn to meet the reduction in conscript
service to eighteen months, thereby
necessitatng greate- expenditures fol
railway travel and the improvement OF
barracks, the new army budget as tenta.
lively presented includes heavy charges
which ordinarily are included under pen.
sions but which since the change In
Government fall under the Ministry oi
War.
1T is also important for America tc
know that although the expenses exceed
the probable receipts by 100000, 0ot
francs this can easily be met by in.
terror loans. the Government having de-
cided definitely lin favor of new taxes
taxes thereby do not interfere with the
buying capacity of small holders"
The French commission will be headed
by NJ. Parmentier. already well known
In the United States, who has been iden-
titled with the Finance Ministry during
and since the war, and is considered a
most able expert on all financial cues.
tions. He will be accompanied by sew
eral Ministry experts and a few ad.
visers selected by himself from the per.
sonne of the largest French banking
ORGANIZATIONS