The Washington times., 1925-08-28

of Frances $4,000. 200. 900 debt to
the United States, it was privately
admitted in official circles today
that all the skill which the Ameri-
can debt funding commission can
muster will be necessary to cut
through the maze created in Lon
dor by Caillaux and Chamberlain.
Having made the settlement o.
Frances debt to England contingent
upon the granting by the United
States Of the most liberal OF terms
to France, the French finance min
lister and the British foreign secrc-
tarv have succeeded in placing this
Gov eminent in a position where it
will be virtually necessary for 1t to
take the defensive in further moves
and negotiations looking to the set
Element OF the French debt.
The fact that Great Britain is
and will be an active party to
Frances demand for greater liber-
atty on the part of the United
States makes the situation more
difficult, 1t was pointed out, in view
of the close and friendly relations
existing between Washington and
London and because Of the fact
that England, Americas largest
debtor, was the first Of the great
nations to enter into a definite
agreement for the payment of her
war debt.
A first-hand survey Of the situa-
ton has been prepared and cabled
to the State Department by Alan
son B. Houghton, American AnI-
bassador at London, who was in
conference with Caillaux and
Chamberlain during the progress Of
their negotiations. Houghton Is
understood to have been informed
in advance OF their intention to
make their debt settlement con-
tingent upon the American attitude
toward the French debt, and is re-
ported to have made it plain that
the Washington Government Is op-
posed to any debt consideration In
volving taking up debts except with
each nation separately.
The fact that the negotiators
went through with their plan in
the face Of the American Ambas-
sador's warning is taken here to
indicate that Caillaux believed and
succeeded in convincing Chamber
lain that the scheme had consider
able merit and should be given a
trial to see whether or not it would
succeed in getting better terms for
France. IN Washington.
Members of the Debt Commission
are fully cognizant Of the dangerous
possibilities of the situation thus
created. but are prepared to stand
fast in defense of the Coolidge policy
that each OF the European debtors
must make separate settlement
with the United States and that
the Anglo-French debt agreement
can have no further significance in
that connection than any other
European political pact.
Pending the arrival of Caillaux
in Washington next month to open
debt negotiations, the debt COM
mission plans to keep up a steady
drum-fire OF opposition to the Lon
don agreement. 1t has already been
described officially as a Joke" and
a bluff" and this is the attitude
that win be maintained until the
arrival OF Caillaux in the United
States.
When he faces Secretary Mellon
across the conference table at the
Treasury he will be informed fatty
that the American Debt Commission
does not want to consider his debt
agreement with Chamberlain. II
Caillaux makes the London agree
ment. condition for continuing the
Washington negotiations 1t il plain
that deadlock may develop which
would seriously hinder and perhaps
prevent a Franco-American settle
ment