The Washington times., 1925-05-11
u. S. to Seek Debts
Settlements in Time
For Congress Session
BY GEORGE r. HOLMES.

France has again been informed.
automatically but pointedly, that
the United States is desirous of
some concrete overtures in the di-
rection of funding her war debt of
more than four billion dollars.
The State Department broke its
policy of silence on the debt mat
ter sufficiently today to admit that
| informal conversations" were in
progress in Paris between Ambassa-
dor sHerrick and French officials,
but it would neither confirm nor
deny that the ambassador had been
instructed from Washington to
make strong representations" to
to the PainleveCaillaux ministry.
No formal mote" was presented
to the French government. That
method was considered here, and
then abandoned in favor of the less
formal. though equally positive,
method of having Ambassador Her.
rick present the Administrations s
views orally to French officials
Ambassador Herrick's representa-
tions followed closely on the heels
of similar representations by Gar
rard B. Winston, Under Secretary
Of the Treasury. who has just re-
turned to Washington after a sur.
vey Of the European debt situation.
This renewed activity in regard
to the debt can be taken, it was
said today, as an indication that
the Coolidge Administration is de-
termined to delay no longer in
pressing not only the French debt,
but all other unfunded war obliga-
tions, to some sort of settlement
before Congress convenes again in
December.
Total Proves Huge.
These unfunded obligations out
standing on the Treasury's books
total in excess of $1,000, 900 .OO0-an
amount equal to one-third ethe
national debt
To get this huge amount on an
tnterest-bearing basis would be no
tnconsiderable factor in the AdHlin-
istratiOn's plan for further tax re-
duction.
1t is understood to be the Ad-
ministration program to press the
French debt to an adjustment, and
next to tackle Italy's debt of more
than $4,000, ,000,0 900, which has been
in the same category as the French
debt so far as collection is con
cerned
Reports from Paris that M. Gail
laux, the new finance minister, will
soon propose an adjustment based
upon the United States taking over
part of the money France derives
from Germany under the Dawes
plan were not enthusiastically re-
ceived in Washington.
This Government has consistently
opposed being made a direct party
TO collecting money from Germany,
and it is not believed that even the
chance of getting some return on
the French debt would cause aband-
onment Of that principle.
Not Looking to Germany
If, however, it was said in Treas
ury circles, the French government
wishes to set aside certain por-
tiOns of the money it derives from
Germany and use such money for
the liquidation of the American
debt. that is French affair.
But ii was emphasized that the
United States will look to France
and not to Germany for the pay
ments.
1t is accepted by Administration
officials that any French settlement
agreed upon must he upon most
liberal terms. A ten-year mora
torium, low interest rate and
payments extended over a period Of
from eighty to one hundred years,
generally describes the terms Wash
ington believes must be extended to
France.