The Washington times., 1922-07-14
FRANCE TOLAY
F|NANCESOPEN
T0|NSPECT|0N
First Meeting to Discuss War
Debt With U. s. Is
Harmonious.
Universal Service.

At the first conference last night
between Secretary Mellon and Jean
V. Parmentier on the funding OF
Frances war debt to this Govern
ment. the French financial repre-
sentative was asked to show what
his country is doing to curtail it's
extravagances growing out Of the
war and to balance it's budget.
1t was plain from the Secretary's
statement OF what transpired at the
conference, which lasted for an
hour, that the burden of proof will
be put on France not only to con-
vince the United States Of her in
ability to begin interest payments,
as is claimed. but that reasonable
efforts are being made to stabilize
her affairs and get ready to meet
her obligations.
Secretary Mellon asked specifical-
ly that NJ. Parmentier prepare for
the information Of the foreign debt
funding commission, of which Mr..
Mellon Is the chairman, detailed
statements amounting practically
to a financial and economic inven-
tory. This data Ia expected to af-
ford the commission a complete pic
ture Of actual conditions bearing
on Frances ability to pay.
Statement Is Desired.
First, Mr.. Mellon said. the com
mission desires complete state
ment Of the French budget for the
current year, the previous year and
the next year. This information
will show whether there Is prog
ress or retrogression IN the matter
Of balancing the cost OF running
the Government with revenues.
Next, NJ. Parmentier was asked
to prepare exhaustive data on ex-
ports and imports.
A third tatement to be submitted
will cover thoroughly trade and pro-
duction and all matters in general
touching on Frances financial re-
sponsibility not Included in other
statements.
Formal negotiations with the fund
ing commission will not begin on
any other basis, II was clearly In
dicated. NJ. Parmentier, who came
to this country armed with statistics
and information Of the kind sought,
assured Secretary Mellon that he
would be able to prepare the state
ments within a few days. When he
reports that he is ready, Mr.. Mellon
will call the commission together to
begin the funding negotiations.
VIII Answer Questions.
NJ. Parmentier will meet with the
commission at its first session and
answer any questions which the
members may desire to ask. The
commission then will take under ad-
visement the question Of further de-
ferring interest payments and fund
ing the debt.
Under the act creating the debt
funding commission, the amount
owed by any country cannot be
funded for longer than twenty-five
years. The commission has the
power to further postpone interest
payments. None of the debtor ma
tions have paid any interest for three
years, under an agreement entered
into with the Treasury Department
under the Wilson administration.
Secretary Mellon said that at last
nights preliminary conference the
question of France undertaking to
pay either principal or interest was
not touched on except in a general
way. NJ. Parmentier assured the
Secretary that his government lex.
poets to pay"
There was no effort to conceal the
fact, however, that France now
claims she is not able to pay either
principal or interest at this time
and will ask for further extension
of interest payments and funding
of the principal, approximately S9,.
600, ,000, 900. for the full length of the
twenty-five year period allowed by
Congress.