Evening star., 1925-10-02
DEBT PARLEY'S END
IN |MPASSE LEAVES
HOPES FOR SUCCESS
Failure to Reach Agreement
Does Not Kill Chance
for Settlement.
CAILLAUX TAKES OFFER
HOME FOR CHAMBER O. K.
American Commission Turns At
tention to Czech Experts.
Coming Next Week.

Disappointed but not giving up hope
over the mo signature" conclusion
yesterday to negotiations here over
the French 81 000. 600 900 debt to the
United States. the American Debt
Commission today turned to ConSidera-
tion of the next debt parley--with the
czchoslovakian Republic = opening
early next week. Italian, and possibly
Rumanian, negotiations may follow
shortly.
French Finance Minister Cailiaux
with practically all of his debt commits
sion left Washington by an earl.
morning train today, carrying back
To Paris the latest American offer of
five-year interest payment plan. Tn
der this plan France would pay $4o,-
900, 900 a year for five years on her
debt, and would reopen the negotia-
tions some time during that period
caillauX did not agree to the Ameri
can offer, saying he was not author
lied to conclude such an accord.
CaiIlaux is Hopeful.
Caillaux promised to present the
American offer to the French Parlia-
ment, and to continue negotiations,
which he said cannot fail to reach an
agreement From the American com.
mission came the expression of belief
that "a basis can be found at such
later date which will meet the views
Of our two countries.
French and American debt COM
missions had met for one week. offer
ing proposals and counter-proposals,
rejecting each others positions with
Y>if nd Fro, Int
offer yesterday morning was fatty
refused by the Americans. who then
countered with the surprising tenta-
tive plan for tive-year payment of
interest of $40.O00,000 annually, a
rate of about l per cent on the total
principal. CaillauX, in a short ses-
sion yesterday afternoon, neither ac-
cepted nor rejected the offer, but
continued the negotiations by the un-
usual move of promising to carry
back the American plan without his
signature.
Should the French Parliament ap-
prove, it would then be necessary for
the American Congress also to ratify
the plan, before it could be put into
effect. In the meantime. it is eX-
pected, although no formal promise
was made, that France will continue
10 pay her S20,0O0,0 900 annual interest
on the war supplies debt, to which
the new plan simply adds $50, 10000
yearly.
Czech Mission Coming.
Negotiations with the Czechoslovak
commission are expected to open
early next week. The visiting COM
mission is due in New York either
today or tomorrow. on the liner
Berengaria, while the new Minister
from that republic Zdenek Fierlinger.
IS expected to arrive in the Capital
tomorrow, having sailed on another
ship. the New Amsterdam.
Diplomatic courtesies are expected
to occupy some time, and it was
thought in American circles that
negotiations over the CZechoslovaktan
debt of S117679 .O95.7O would open
some time early next week. The
Czechoslovak Debt Commission is
headed by Nilem Pospisil.
Italy has informed this Government
that her debt commission, hoping to
fund the Italian debt of 81 ,13S, 543.-
S5277 to the United States, will sail
about the middle of this month. The
French debt of more than four billion
and the Italian debt are the two lars-
est outstanding unfunded war debts
owed the United States.
Results of the Franco-American
negotiations are known to have been
far below the expectation of some
american commissioners, although in
the opinion of other American mem-
bers there never had been real con-
fidence that complete success would
attend their efforts.
Difference Finally Admitted
AS the French In their latest offer
proposed that they could pay $40 ,000,-
600 annually for the peXt five years,
It was said by the American commits
sion in the final American offer that
this figure might be considered as the
basis for the new understanding. This
annual sum would be considered full
current interest on the debt during
that period" 1t was further said that
"at the end of this five-year period the
two governments shall again review
the capacity of France to pay and de-
termine at that time the amounts
which shall be paid over such further
terms as may be then agreed
1t was evident from the turn of
negotiations from time to time, and
finally admitted by the Americans in
their statement to the French, that
the real stumbling block to agreement
lay in difference in Judgment as to
the future capacity of France TO pay,
without as we have stated. under
mining her economic and social
fabric"
Documentary evidence of the prog
ress of negotiation during the past
week made public by the American
commission last night revealed in fig
ures what had been informally tndi-
Gated at various times: That the two
commissions were not only far apart
on the future capacity of France to
pay, but that their methods of ap-
proach to the problem were peculiarly
different.
The French, on their part, had
from the outset held their offers to
fat sums. annuities, including both
principle AGA interest. Caillaux and
his experts figured out what, In their
opinion, France could pay, and made
the offer in terms of yearly payments,
both principal and interest.
Procedures Far Apart
On the other hand. the American
commission followed the plan it had
used in previous negotiations. of con-
sidering the principal in installments
and the interest by it's rate. This
practice of shooting in different direc-
tions. as it were, at the same mark.
was believed to have been the cause
Of some delay and confusion during
the negotiations. as each wished to-