Evening star., 1924-12-30
FRANCE TO INSIST
DEBT SETTLEMENT
Be FULLY REVISED
Pooling Proposal of ClementeI
Has Government and
Bankers Support.
HINT OF REPUTATION
is WARMLY RESENTED
Embassy Denial of Charge Molh-
fes Apprehension Among
Officials Here.
By the Associated Press.

PARIS, december SU.-r lHdhce viii
lister Clementers suggestion of pool
ing the interallied war debts, made
in his balance sheet of Frances finan-
cial situation issued last Saturday, is
regarded in the highest banking cir
cles as actually representing the SEN
timent of the French government as
we'll as of French finance.
The minister was bound, 1t was re-
marked, to avoid for diplomatic rea-
sons being drawn into categorical
statement to that effect Hence his
declaration in the Chamber of Depu-
ties last night, in which he argued
pro and con on the ways of settling
the interallied debt question. In
quiry among fnanciers and among
public men closest to the cabinet
however, indicates that the French
generally believe that the whole post
war financial settlement should be
revised.
Cite Treaty Revision.
This claim to a new deal is based
on the fact, they point out, that the
treaty of Versailles has been revised
to French detriment. Through the in
f1uence of their principal creditors
Great Britain and the United States,
they have made concession after con-
cession until there is little left of their
claims on Germany, they insist, while
their war debtors show little disposi-
tion to pay and their war creditors de-
mand full payment.
OF the 5000, 100000 francs gold.
owing to France for advances made
during the war. the government counts
on collecting nothing. Italy contests
part of the claim against her and says
she ought not to be called upon to pay
any part of it. Rumania has shown
the greatest Sensitiyeness when sug-
gestfons were made that she let 1t be
known how she thought the matter of
her debt ought to be adjusted. France
has made no move with reference to
Belgiums 5000, 100000 franc debt,
while the 5000, 600 franc owed by
Russia has been Theoretically writter.
off as uncollectible.
AS for Germany, 1t is pointed out
that she escapes not only the payment
of French pensions, but, according to
the most liberal estimates possible,
will never pay more than half the ma
terial damage France sustained.
These are the reasons given for de-
string a new liquidation of the war
time financial operations.
Resent Reputation Talk.
The French financiers and public re-
sent sharply the suggestions that such
proposals are cover for reputation.
They recall that Germany, after what
they characterize as the most formi-
dable repudiation that world has every
known, was rewarded by a reduction
of her war debts and with a loan to
put her economics on a sound basis
again.
The Radical and Socialist leaders in
the Chamber of Deputies take this
view. Leon Blum, leader of the
Socialists, solicited and obtained from
NJ Clementel the promise that he
would bring up before the finance
ministers conference next month the
question of a revised liquidation of
the debts and a revision of the per-
centageS of reparation payment dis
tribution fixed at Sr".
1t is urged in off, al circles that
in winding up the affairs of the war
France alone has been asked to
make the concession thought to be
necessary to unravel the great f1nan
cial and economic tangle. France
abandoned her claim to repayment of
war pensions, but Great Britain thus
far. II is recalled, demands the pay
ment of her full percentage of repa-
rations receipts which is made up al
together of pension claims.
Accepted U. s. Proposal.
NJ Clementel pointed out in his
speech last night that France, for
reason of sentiment, had decided to
accept the American demand for par
ticipation in the Dawes plan annui-
ties to pay the American war damage
claims, although power that had
failed to ratify the treaty of Yer
sailles the United States could not
legally sustain such a demand. Senti-
ment, he added, ought to come into
IL Of ha
In these words the finance minis
ter summed up the general French
opinion that If sentiment is brought
into play 1t should serve every one
alike. If the whole settlement is to
be made on a business basis, it is
argued, then the principal creditors
of France cannot ask France to for
give her debtors unless they are
willing to reciprocate.
There exists strong belief now,
despite the reticence of NJ. Clementtl, l,
that the subject of the interallied
debts and revision of the percentages
of reparation distribution will come
up at the meeting of the finance min
listers with James A. Logan, the
American representative with the
.reparation commission, next week.
The discussion will be merely ten
tative one, however, it is indicated,
chamber that no definite arrange
ment would be made before Parlia-
ment was consulted.
Text OF Remarks.
Minister ClementePs remarks be-
fore the Chamber of Deputies last
night are printed today in the Jour
nal Official. The official text follows:
1.-The request for participation by
the United States in the Dawes an
puIties was not formulated at the
time of the negotiations for the Nor
gan loan, but was made Immediately
after the London accords. 1t was
couched in very friendly terms, but
was nevertheless based on the funda-
mental condition of recognition by
us of the right of the United States
to share in the Dawes annuities for
reparation for damages to property,
with Immediate payment of damages
to persons.
I'VE consulted experts on foreign
affairs, who declared that the United
States legal right to such participa-
tion could be seriously disputed. But
there remained the question of equity.
Mr.. Logan, who for several months
at the reparation commission has
always shown himself sympathetic