Daily Kennebec journal., 1925-08-27
Chancellor Churchill
and M. Caillaux Agree
on Total Payments
775,OO0,0OO Pounds
Sterling
Would Be Made in 62 Yearly
Payments of 12,500,00O
Pounds-All Hinges, How
ever, on Terms France Makes
on Her Debt to U. S. and
Final Approval French Gov
ernment

London, Aug. 26-(AP)-A tenta-
tive agreement for settling the
French debt to Great Britain in 81
annual payments of 12,500,0 pounds
sterling each was reached today by
Winston Churchill, British chancel-
lor of the exchequer, and NJ. Call
aux, French finance minister. The
total paymets thus would be 775,000.
900 pounds sterling, the original debt
being 623,OO0,000 pounds.
The whole agreement hinges, how
ever, on what terms the French debt
to the United States Is settled and
on whether the French government
approves.
Mr.. Churchill made it plain in a
statement tonight that the British
were willing to go through with the
bargain he and M. Caillaux have ar
rived at only in the event that the
United States receives no more
from France in proportion to the
size of the two loans than Great
Britain.
In the face of today's agreement II
would seem that Great Britain is
willing to forego receiving any OF
the principal on the sums she lent
France provided the French pay
slightly more than two percent on
their loan each year for 62 years
the time which it will take the
British to pay their debt to the
United States under the existng
agreement.
Under the agreement there Is TO
be a partial moratorium until 1851.
hv which time the French treasury
will have. been relieved OF It's Dur
den. of helping the Bank OF france
nav off the debt of l,3O0,oOO'ooo
, francs to the Bank of England, the
last payment of which Is to De made
five years from date.
In principle, it was agreed to take
NO cognizance of what the Dawes
plan may or may not yield In set
Ting the Anglo French debt france
payments of 12,500,OOO pounds ster-
ling O. year are. according 10 MI
Churchill, to be on the sole res
ponsibility Of France subject 10 an
agreement being reached ON various
matters of detail and sub1eet 10
governing COuuitiohS "a -
ate and equal treatment by France
of her creditors.
Or. to put it another way. MI;
Churchill might we'll have SAID
"Eaual treatment of France by her
creditors. so,,h+-
less was issued especially for nome
consumption, as he gave copies ohiS
40 representatives of the Brltish
nress. 1t says that M. Caillaux re
served his opinion on these PROPOSE
tions and promised to lay them De-
fore his government
Tho French finance minister In a
separate statement says he consid-
orc that. apart from any question OF
fpures IAN arrangement with Grea I
Britain would be worthless unless IL
contains stipulations, only partly ac-
centa1 by Mr.. Churchill. to suspend
the transfer of annuities in any case
where these operations threaten 10
disrupt exchange"
mr. Caillaux further considers tnat'
"whether in one form or another
guarantees should be given to France
that in no case would she have 10
nav TO all the allied and associated
powers higher sums than she Will
receive from Germany
Both Mr.. Churchill and M. Call
laux paid tribute to one anothers
good will and insisted that the ne
gotiations were only temporarily
suspended to wait anu
see what happens when the French
come in contact with their Ameri-
can creditors.