The New York herald., 1922-09-02
FRANCE WANTS DEBT
CONFERENCE CALLED
Until One Is Held Cannot
Indicate How She Will
Settle Obligations.
CANCELLATIONS DIFFER
Only Part Of Amount Due
America in Same Class
as Other Nations.
WANTS u. S. IN FARLEY
France Won't Discuss What
She Owes Until Germany
Pays.
WANTS U. S. IN FARLEY

PARIS. Sept. l tASSociated PreSS).-
The French Government. in reply TO
the recent note sent out by the Earl
OF Balfour dealing with an interna-
tional settlement of debts and repara-
tions on the basis of a general can
collation. of interallied indebtedness
and a reduction in German reparations.
points out the necessity of a confer
ence for general consideration OF war
debts at which, will be represented all
nations, without exception, interested
in the settlement of such obligations.
Until such a conference is held.
France, 1t is declared in the note for
warded to the British Government to-
night. will be unable to give definite
indication to the creditor Powers as to
the payment of the debts she con-
tracted during the war.
Note Makes Dfstinction.
The note which is signed by Premier
Poincare. draws a distinction between
the debt to England and that owed to
the United States. After explaining that
part of the debt TO America was con-
tracted after the armistice through the
purchase of surplus war stocks. and
therefore regarded as a purely COM
mercial transaction. the Premier con
tinues:
the debt to America. the same reasoning
applies as for the other war obligations
OF France. But it cannot be forgotten.
nevertheless. that the United States en-
tered the war. without her existence
being directly menaced, to defend with
her honor the principles upon which
civilization is based, while England, like
France. fought to safeguard not only
the independence of her territory. but
the property and the means of existence
OF her people"
U. $. should Participate.
The note declares that the reparations
problem can never be permanently dis
posed of until there Is an agreement on
war debts. and. without mentioning the
United States specifically in this con-
nection. plainly indicates that the United
States should participate in such a gen.
eral understanding. France was only
prevented from initiating such an agree
ment. II is added, by the publication OF
the Balfour note.
The war debts were not contracted
for the profit of separate nations. but in
the common cause of liberty. the note
continues, and from the point OF view
OF morality general cancellation Is quito
justified On the other hand, the Ger
man indemnity is placed in totally
different category. since IL was imposed
for destruction caused by Germany. for
the most part unwarranted, and France
was forced to make heavy advances Tor
the reconstruction of her devastated
regions.
The payment of the German repara-
tons indemnity naturally has priority
over the payment of all other debts,
the note asserts. and since Germany's
payments have been totally inadequate
to date, France has been forced to pro-
ceed with the reconstruction OF her
devastated regions herself. This has
prevented her from balancing her
budget" IL declares, "and so long as
payments from Germany, or money
from some other source fail TO meet
French reconstruction needs France
cannot be expected to be in a position
10 discuss the payments of the debts.
tions. however, France will be willing
TO negotiate the question OF the pay
ment of debts"
should Revise Debt to britain.
The amount owed to Great Britain
has not yet been exactly determined.
and should in equity be revised. the
note says AS showing that no COM
parison can be established between In
teralled war debts and reparations. the
note points OUT IF the Allies had not
lent reciprocal financial aid from which
the war debts have arisen. either the
war would have terminated badly for
them or would have lasted longer. In
any case the lending countries would
ha sc had. either by the work OF their
industries, or BY sending more numer-
Gus troops. to make that effort which
the borrowing countries made instead
OF them.
''Reguiation of the debt question
should be as general as possible. France
demands TO be treated as she treats our
common allies. Now she does not de-
mand the payment of the sums which
our common allies owe her she realizes
that morally and materially such de-
mand would be inadmissible ~ the
present time. and she does not think
even OF presenting It,"
The note concludes: with the fore
going reserves France considers. like
Great Britain that general regulation OF
these debts, II acquired at the cost Of
reciprocal sacrifices. would be profitable