The Washington times., 1925-08-25
ALLIES GET
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similar official luncheon assumed 9
fortnight ago when the BRAND
Chamberlain conversations over the
German security pact were in pro
gress, to understand the opportunity
which today's gathering viii afford
for the sounding out Of Houghtor
BY Churchill and Caillaux.
Significance SEEN
The London star commenting on
the presence Of the American am
bassador at the luncheon at the
French embassy. said this evening:
eft Is impossible to avoid the sig
nificance in this association Of the
three greatest powers In the world
gathering around the luncheon ia
BILE at the height Of critical inter.
national negotiations.
At the foreign office It was said
Britain would welcome a three
mower debt conference along the
lines which British and French
leaders are discussing here although
doubt was frankly expressed
whether the United States would
come into such negotiations.
Before Churchill and Caillaux re.
summed their conversations today
CailIaux had q conference at the
French Embassy with Montagu Nor.
man. governor OF the Bank Of Eng
land. Theirs for twenty minutes the
French financial wizard and the
head OF Britain's great banking In.
atitution discussed the possibility OF
extending English credit Tor the
EXAMINATION of the French franc.
This was in reality. the discussion
IN more definite terms, OF SUBJ
fact talked about last night when
CaiIlaux and Norman sat together
~ dinner in the French embassy.
when CaiIlaux went to the Treas.
,Irv today he was accompanied by
N. Rarnaud, one Of the experts from
The French finance ministry, and
was prepared to lay before Churchill
the result of his own conversations
with the head Of the Bank OF Eng
land.
At the conclusion Of his confer
ence with Churchill. Catllaux hur-
ried away In q waiting automobile
20 keep his luncheon engagement
at the French embassy. He said
merely that he would resume his
conversations with the chancellor
Of the British excheQuer after the
luncheon.
Compromise On Terms
When the Franco English nego-
tiations started yesterday It was
understood Churchill would ask
Catllaux to pay 2O.000.000 pounds
q year: and CaiIlaux was prepared
to counter with an offer of 10,-
600 900 pounds annually.
Today It was reported that
Churchill was willing to scale down
the British demands to $1,000, 900
pounds, and that Caillaux would
meet this proposal with an offer
Of 10000, 900 pounds.
As a basis Of compromise seemed
possible on the total Of annual pay
ments on the, French debt to Brit
ain. a new Snag was seen over the
question Of how much OF that sum
could be satisfied out OF France .
share OF receipts from Germany I'M
der the Dawes plan.
CaiIlaux was said to have sug-
geSted that two-thirds of the annual
payments come from the Dawes re-
ceipts, while Churchill was not will
ing to accept more than one-third.
This situation, however, was gen.
orally expected to. be solved by a
"fifty.fifty'' compromise.
The most knotty problem, how.
ever. Is expected to develop over
Caillaux's reported request for a
moratorium of ten years, dating
from the signing of the Anglo
American funding agreement.
Whatever the sum finally agreed
on for France to pay, it was re-
ported, England will demand that
the amount of the annual payment
be subject to revision in accord
ance with Frances ability to pay.
The British presumption Is that q
revision viii be upward.
The complicated question Of seal
ing the French payments to Eng.
land to conform to the sums that
France will pay the United States
has also been injected into the
discussion by Churchill. according
to reliable reports.
Meantime the press has been dis.
playing a sympathetic attitude to-
ward the French foreign ministers
task. His reception generally has
been warm with the gist of com.
Inent being that ''it is too bad
France must pay England, but
necessary because England must
pay the piper America"
Any agreements reached by
Churchill and Caillaux will not be
final, but will be submitted TO
their respective governments for
ratification before further negotia.
lions ara carried IN