Evening star., 1925-02-25
THE STORY OF THE FRENCH DEBT
BY WILLIAM P. HELM, JR.

fore not only willing, but anxious
to make to the government of France
a price for this property which VIII
be attractive to it and TO extend cred
it for the entire purchase price"
Surplus Supplies Needed.
And again, from the same letter 70
NJ. Morel:
May I not, in conclusion, remind
you that as the treaty of peace with
Germany has been signed and meas
ures have been taken by your gov
ernment and ours, together with their
associates, to insure lasting peace,
and as the American eXpeditiOnary
forces are being very rapidly with
drawn and returned to their homes, it
is imperative that the surplus war
supplies belonging to our Government IN
France should be speedily disposed Of
if not to the French government, then to
others who urgently need and are seek
ing to acquire them, to the end that they
may be promptly and fully utilized to
bring back a measure of prosperity to
the suffering peoples of the world "
That ringing, and somewhat Indignant
reminder of the business at hand had
the effect, 10 days later or on July II,
of bringing another bid from the French
authorities. This time France offered TO
pay five years later 2,0S5, 100000 francs
(about $500, ,000,0 ,000), and to sell the sup
plies in her own way, and after deduct
ing expenses divide equally with the
United States anything received over the
price named
That offer was rejected, and the com
mission suggested to the French au-
thorities that the sale be definite, final,
complete and unconditional, leaving be-
hind no loose ends to breed trouble"
Five days later. or on July "a. 1919,
tentative agreement was reached on
the purchase price, which was fixed at
S400, 100000, subject to minor adjust
ments (Which later sweled the total to
s407, ,000,000) plus certain other con-
siderations, one of which, at least prob
ably will seem somewhat surprising to
the average American citizen unac-
quainted with the ways of French nego-
, tiations.
1t probably had never occurred to
the average American civilian during
the hectic days of war that France
would welcome with anything but
open arms-and open ports-the flood
of supplies which American industry
was pouring into France. But the
French had tariff on imports, and
although American supplies were
flowing in to maintain American
troops holding the line against the
German advance into France. the
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the time came to dispose of our sur
plus supplies.
Tariff Question Raised.
In substance, the point raised was
that the United States had paid no
tariff on the huge reservoirs of war
supplies thus constructed in France.
The tariff had not been collected dur
ing the war, but the war was over,
and here was this great accumulation
of American goods on French soil,
duty free. What about the TARIFF
Here is how the report of the Amer
ican commission answers the ques-
| ton:
THE commission had the inven-
tories studied in connection with the
French tariff schedules, and it was
found that $150,0O0.000 was a con-
servative estimate of the aggre gate
duties, payable under the normal
rules, for all of cur stock in France.
This claim was given weight in fix
ing the final purchase price of $400,-
| 600, ,000.''
"And what about rent for the space
| occupied by the American supplies?
| What, too, about the claims of French
citizens for damages, ETC., in connec-
| tion with the docks, depots, railroad
1 yards and other installations made by
| the American forces2 These questions
| inquired prominently In the bargaining
| and they, too, were given weight in
arriving at the $400,000,000 purchase
price.
| France agreed to pay the rent after
August 1, 1919, and to assume herself
all the claims of the kind mentioned,
That is the sort of bargain France
drove with America when she bought
| our surplus materials on 10-year
credit. And during the time of these
/ No a tinnS a hnff,a her fsz
| tive at Washington was loaned more
! than $15G,O00. 900 in cash from the
American Treasury.
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