Evening star., 1924-12-31


the inexplicable effect produced nv
his inventory in the United States and
is giving repeated statements for
publication denying that he ever de-
clared France would not fulfill her
engagements.
Finance Minister Explains.
Minister Clementel, reiterating his
declaration that Interpretation of his
balance sheet as suggestion for re-
pudiation of Frances obligations was
absolutely erroneous, declared today
that the principle of capacity for pay
ment which was applied to the set
tlement with Germany ought to be
applied to the allied debtors as we'll.
and that he was in favor Of the Dawes
plan. without the control feature for
all the war debtors
The finance minister said this was
| not an official proposition, but sim
ply his personal amplification of his
own remark that IF the principle of
capacity for payment is rightly ap-
piled to Germany il ought to be
granted to all the war debtors"
In an extended explanation of his
inventory of Frances debts and
claims, made public last week, he ex-
pressed regret that a single phrase
from the document had been isolated
from the rest and had given rise to
some unfavorable comment in the
United States.
Reparation Not Planned.
france" he said, intends to
repuolate none of her contracts. Her
signature remains sacred But that
does not prohibit her from appealing
to that sense of justice which
RrOnned har
during the war. She had shown her
intention to keep her engagements by
paying abroad more than two billion
francs gold. or eight billion francs
paper, in actual cash since 1920
That is more actual money than Ger
| many has paid on her foreign obliga-
ttons, which the experts found was
too much and decided she required a
moratorium.
AT the same time the French tax
payers were taking the place of Ger
many in the effort for the recon
struction of Northern France. Half
of the French citizens' tax burden is
TO pay the interest on the war debts
and for reconstruction.
THE effect of these payments made
from 1920 to 1924 on French exchange
was disastrous, but we kept on pay
ing and Will continue.
I'VE omitted from our balance sheet
the war debts of France to Great
Britain and the United States for the
same reasons that we omitted the
debts owing us by other allies, be-
cause no final settlement has been
reached concerning them.
Thinks America Misled.
THE conclusion drawn in America
from this fact that we intended to
repudiate them is absolutely unfound-
ed. and unreasonable. In the same
document 1t was explained that pro-
vision would be made in future budg-
| cts for the payment of debts. We
could not very we'll tell just how
much we would have to put into those
| budgets for the purpose, since they
have been funded. Does this indicate
tendency to repudiate our debts?"
M. Clementel insisted that the de-
| sire of France to discuss her debts
on a basis of equity with her credi-
| tors was only natural. in view of her
! immense financial burden, and de-
clared 1t required considerable lack
of faith to dfstort that sentiment
into a tendency to repudiate.
Explaining his attitude regarding
the general settlement of debts on
the lines of the Dawes plan, M. Gle
mentel said he had excluded from
the general plan the control that had
| been imposed upon Germany because
there was no reason for it in q coun-
| try that was not refractory debtor.
| He thought, however, that the system
of regulating transfers of money, as
| we'll as the principle OF capacity for
payment, ought to be applied.
Possibility OF Upset.
'The principles of the Dawes plan,
which subordinate payments of q
debtor state to its capacity to pay,
are quite as applicable to the allied
war debtors as to Germany. the min
| lister said. THE possibility of effect
! ing transfers of money, without dis
| turbing exchange and unsettling ma
tional economic conditions, is not
| condition that exists in Germany
| alone.
'If France asks that her debt set
| Elements be made with due regard to
the amounts she can recover from her