New Britain herald., 1925-01-07
WASHINGTON SEEMS KEY ID SITUATION
French British Talk Turns
 Toward Debts Again
By The Associated Press

By The Associated Press
 Paris, Jan. "A talk between Finance Minister Clementel Of France and Winston Churchill, Brit ish chancellor of the exchequer. held this forenoon in advance of the opening of the finance ministers conference, served once more to bring out the tendency of all Euro peon debt discussions, no matter what their beginning. to veer to- wards Washington before they have progressed very far.
 A communique on the subject is- sued after the meeting threw little light on the discussion, merely de- claring there had been an official exchange of views on the general as- poets of the interallied debts. It is understood, however, that MT. Churchill opened the discussion by setting forth the well known British standpoint that Great Britain must receive from her war debtors sums equivalent 10 those she must pay the United States.
 The French finance minister's re- ply was that the French were obliged to take exactly the same at titude-the France likewise could not forgive her debtors while obliged to pay her creditors.
 Up to that point, 1t appears, the conversation was easy in tone. It grew more difficult when M. Clemen- tel began to place the responsibility for the diminution in reparation 1 payments which France may expect from Germany charging it to the other allied and associated powers. France, in his view had yielded to the demands of the British and the Americans in accepting a reparation settlement which reduced her share by more than half without obtaining 1 any absolute assurance that she would be able to collect even that reduced claim.
 MT. Churchill avcrred in sub stance, it is declared. that the Dawes plan was freely accepted by all the allies as q necessary meas- ure to restore the economic situa- tion, not only in Germany but in all Europe, and that France was not the only power that made necessary concessions.
 The conversation lasted more than two hours and makes it certain that the debt problem will occupy much of the time of the finance ministers conference, although per- haps it will not be officially dis cussed at the general meeting.
 It is linked closely with the French demand for revision of the reparation percentages in her favor, but the discussion under this head will not involve the American dele gation. since the American claim to a share in the Dawes annuity will be considered apart from the ques- ton of the division among the allies of their share in the annuity.
 Mir. Churchill is understood to have agreed that the presence of American representatives at debt conference would be desirable, but that if on account of the special situ- ation In which the debt question stands in the United States through the existence of its debt commission, the United States government could not participate, it was impossible for the European debtors and creditors to hold their affairs indefinitely in suspense.
 The British chancellor of the eX- cheuuer is said to have intimated that Great Britain would be glad to begin to see some of the money she advanced during the war returning to her, since she had now been for two years paying back what she had borrowed from the United States.