The Washington times., 1925-01-05
By GEORGE Il. HOLMES,
international news Service.

AWtgA s1~gsNeAa~A ANONNR tVSANANSs
Frances much heralded "proposi-
ton for the funding Of her $4,000
900, 900 war debt to the United
States was officially revealed today
as only an empty gesture. which
for the present does not afford q
suitable basis on which serious
funding negotiations can be begun.
The communication which Am
bassador HerricIx forwarded to the
State Department. over the week
end was not addressed to the Amer
lean government, nor did 1t come
from the French government, but
was q personal memorandum
from Finance Minister. elemental
which contained no definite nor
concrete suggestions for payment.
Al copy of the memorandum was
sent to Secretary Of the Treasury
Mellon for his Information. M.
ClementAl's memorandum was de-
voted almost entirely to an exposi-
ton of French public opinion on
the general subject of war debts.
The communication was keen
disappointment to Administration
officials, and they made no efforts
to conceal 1t.
For publication purposes they
said they hoped that this per-
sonal and unofficial piece OF paper
would be followed up by q more
serious and official document con-
tanning definite indication of
Frances intention to pay the debt.
1t was made plain in Administra-
ton circles today that this Govern
ment feels It has had enough sin
formal unofficial and nonbinding"
exchanges with the French govern
ment over the debt.
A meeting Of the American Debt
Funding Commission probably will
be called this week to consider the
latest unofficial" French overtures
IN the settlement of her war debt
The United States.
Members Of the commission said
today they obviously would not ap-
prove something that they knew
beforehand Congress would REFLECT.
There was good deal of dissatis-
faction in Congress over the terms
Of the British settlement. which
carried no moratorium, interest Of
and 81 per cent, and completed
payments within sixty-two years.
Hence they believe it would he
worse than useless to ask Congress
to approve any settlement with
France that departed very radically
from those terms
Hope Of Leaders.
The chief hope of Administration
officials today was that the French
communication will be found to con-
tain sufficient meat" to warrant
serious funding negotiations.
Only the beginning of real negotta-
tons can much longer forestall an
outbreak in Congress over the
French debt, which will not he cal.
culated to improve Franco-American
relations. No less than. a dozen
Senators, some of them bulwarks
of the Administration, are planning
to express themselves concerning
Frances policy Of quasi-repudiat:on
Of her war obligations. For diplo-
matte reasons, Administration lead
ers are hopeful OF avoiding this.
Among those planning to speak
is Senator William T.. Borah of
Idaho, chairman Of the Foreign Re
lations Committee. He will poin:
out, among other things, that the
American taxpayer Is now being
taxed per cent a year on the
British debt, being approximately
$50, 900, 900 year.
Not to Debate Debts.
And IL the French debt is settled
on anything like the terms France
is reported to have 'unofficially"
proposed, American taxpayers will
make up the difference between AZ
per cent now being paid on Liberty
bonds and the one-half of l per cent
France suggests. This would
amount to approximately $150,000,-
900 a year for years to come.
Officials reiterated today that the
presence in Paris of Ambassadors
kellogg, Herrick. and Colonel James
A. Logan does not mean they will
debate the debts with the allied
finance minister, who meet there
tomorrow. Kellogg and Logan were
sent to Paris to observe and safe
guard American interests in the