Evening star., 1925-01-02
q. S. LEADERS GRATIFIED.
Formal French Offer Lessons Trou-
blesome Issue.

' BY the Associated Press.
Despite firm declination on the part
of State Department officials to COM
ment, it was learned today from au-
thoritative sources that a plan in
skeleton form and lacking certain de-
tails has been received by the Wash
ington Government for the refunding
by France of her war debt to the
United States.
This development became known
today after the regular meeting of
the Cabinet at which the plan is un-
derstood to have been discussed i'm
formally.
The French proposal was deliver ed
by NJ. Clementel, French minister of
finance, to Ambassador Herrick in
Paris and was communicated by the
Ambassador to officials of the Wash
ington Government charged with
deht-funding operations. =
The cabinet did receive and consider
informally, however, intimations that
had reached officials here in advance
of the note, showing in skeleton what
the French proposal might be expect
ed to contain.
This outline whose details are guard
ed with the greatest care, Is under
stood to have been communicated to
the State Department by Ambassador
HerriCk after his recent conference
with French Finance Minister Glenn
entel.
1t is not known here whether the
proposal made to Mr.. Herrick was
more complete in detail than informa-
tiOn which he has forwarded to Wash
ington thus far In the meantime, 1t
is assumed cable exchanges are In
progress 20 clear up this point, and
all attempts at a decision are with
held
Report Is Divided.
In making his report Ambassador
Herrick divided the account Of his
conversations with Premier Herriot
and NJ. Clementel into two phases,
one dealing specifically with the at
tftude of the French government with
respect to intent to pay. and the sec
ond having to do with methods of
payment worked out by the French
finance minister as basis for nego-
Tiations with the American Debt Com
mission.
That part of the report dealing with
the second phase is understood to
have been turned over to Secretary
Mellon, head of the American Debt
funding Commission, which alone
has jurisdiction over war loans owed
hy foreign governments to the United
States.
While the Treasury was without
Information, except as conveyed to
orticials by press dispatches, 1t was
indicated that a meeting of the debt
commission would be called soon
after more complete details are re-
CCiyed.
Previous conversations between
Ambassador Jusserand and Secretary
Mellon are understood to have dis
closed he had information that an
amortization of one-half of 1 per
cent a year would be acceptable to
France.
The belief prevails here, therefore,
that France probably is hoping to
amortize the debt at rate of about
one-half of l per cent a year, plus
the annual interest payments.
Assuming that l0-year moratorium
on payments of principal and interest
should be granted, France at the end
of the moratorium would owe interest
over a period of about 16 years,
making the total interest and prin-
Cipal in excess of $4,000, 600. 600 when
The annual liquidation begins. About
50 years would be required to pay off
the whole debt if the interest is paid
annually after the 10-year mora
torum expires
There was the suggestion at the
Treasury, on the other hand, that
1'rance may be asking that there be no
interest charge in the l0-year mora
tcrium period, and the view reflected
Continued on Page II, Column 3D.