Evening star. [volume] (Washington, D.C.) 1854-1972, 1925-05-10
FUNDING OF FRENCH
DEBT RUMORED AS
WINSTON RETURNS
Treasury Official Denies Me-
gotiations, But Possible
Conversations Are Seen.
DISCUSSION OF FINANCES
IN PARIS is ADMITTED
Diplomats Believe Way Has Been
Cleared for Adjustment Held
Incumbent on France.
BY the Associated Press.


Coincident with the return to Wash
ington from Paris yesterday of Under
Secretary Winston of the Treasury,
who spent several weeks in the French
capital on a vacation, there was wide
spread speculation, particularly in
diplomatic circles, as to the possible
significance of his visit in connection
with the French war debt question.
Washington officials, including Mr..
Winston, made the fiat statement that
| they knew of no recent development
looking to initiation of negotiations
for a refunding agreement between
France and the United States. In
some other quarters it was limited that
a direct move to foster the beginning
of debt conversations either had been
made or soon would be made. Among
some diplomats the view was express
ed that conversations of this kind ap-
peared to be impending, judging by
the course of developments in London
Paris and Berlin in connection with
the security question and the connec
ton of that problem with the French
financial situation.
Admits Financial Discussion.
Mr.. Winston admitted that all
phases of international financial mat
ters which fall within his jurisdiction
had been touched upon during in
formal conversation in Paris, not only
with Ambassador Herrick but also
with French governmental officials
with whom he came in contact. He
empha sized however. that he had
made it clear to everybody concerned
that he was on q vacation and that he
was not delivering official messages in
an unofficial way.
The undersecretary was surprised
at the favorable economic and financial
outlook he found in Paris. While he
did not go into details, he said he felt
assured that France would succeed
within a years time in getting her
financial affairs out of the difficulties
which have overwhelmed them in re-
cent weeks, resulting in ministerial
changes.
French Action Held Likely.
The view in diplomatic quarters that
France is quite likely soon to begin
debt funding conversations of a def
mite nature appears to be based on the
theory that she must put her financial
house in order before the fundamental
question of security can be settled
satisfactorily through the negotiations
that have been proceeding in n tri-
angular way between Paris, London
and Berlin. Since the French war
debts with Great Britain and the
United States are factor that must
be considered by French financiers in
working out any financial readjust-
ment, it is assumed that the debt
question probably would have to be
dealt with before other aspects of the
readjustment could be put in final
form.
Largely because of this reasoning
diplomats have been inclined to at
tach considerable significance to the
visit to Paris of Mr.. Winston. Some
inquiries seeking light on what might
have been the results of his informal
conversations there are known to nave
been dispatched. There is nothing to
indicate that they have as yet pro-
duced anything more definite than
Continued on Page 8, Column So