Evening star., 1925-09-26
DINNER GATHERING
EASES TENSION OF
DEBT NEGOTIATIONS
French and Americans Ar
rive at Better Understand
ing Around Table.
RAPID AGREEMENT NOW
is BELIEVED PROBABLE
Next Session of Conference Likely
Monday-Caillaux Studying
U. S. Answer.

Monday-Calllaux Studying
u. S. Answer.
Divergent views of the French and
American commissions over Frances
-billion-dollar debt to the United
States received such intimate and per
sonal treatment at dinner last night
attended by two representatives from
each government that indications to-
day, from the French side at least.
seem to point toward a rapid under
standing" No joint meeting of the
two commissions will be held before
Monday, although no definite time
had been set for a session even then.
The dinner last night. which today
assumed high significance in the prog
ress of negotiations. was held at the
home Of Gerard 3. Winston, I'm
dersecretary of the Treasury, who is
secretary of the American Debt Com
mission. AT the dinner were Joseph
Caillaux, French finance minister,
head of the French commission; NJ.
Moreau-Neret, financial expert at the
French embassy; Secretary Mellon.
chairman of the American commits
sion, and Mr.. Winston.
Debt Issue Discussed
On behalf of the French minister
it was said today that while the din
ner was largely social, the matter OF
the debt, the uppermost in all minds,
was discussed informally, with both
sides celebrating their viewpoints.
These viewpoints on paper now rep
resent the original French offer.
which was refused by the American
commission in a three ge memoran-
dunn yesterday, which made pointed
suggestions as to a more acceptab able
position for the French to assume.
On behalf of NJ. Caillaux it was said
that the four men in the intimacy OF
Mr.. Winstons home thrashed out a
great many details which, it was
further predicted, may clear the way
for a rapid understanding"
CailIaux Up Early.
NJ. Caillaux, although remaining at
: the Winston home until what was
understood to have been rather late
! hour, was eagerly up and about this
morning SO early that he arrived from
/ the embassy at the Hamilton, where
the commission is stopping, before
most of the French commission had
arisen.
In fact, shortly before $50 the
French finance minister was forced
to wait for several minutes in the
lobby of the Hamilton Hotel. where
he nervously paced back and forth,
awaiting his commissions appearance.
Word hastily was flashed to the
French delegation, however. and with
in a few minutes they We're in session
with their minister
The latest developments in the
debt situation were discussed and NJ.
Caillaux relegated to certain mem
bers of the commission various duties
in regard to studying the American
reply of yesterday. Shortly before II
O'Clock NJ. Caillaux departed from the
hotel for the embassy. He seemed
full of optimism over the latest de-
Velopments, although it is known that
the fiat rejection of his overture by
the American commission had been
somewhat Of a shock to him and to
his associates
Plans of the American commission
were not divulged, but 1t had been
thought yesterday that no special
meeting of the Americans would be
necessary until a joint session with
the French.
Wants Tangible Basis.
NJ. Caillaux is known to be working
on general program for the com
plete restoration of French finance
one OF the principal factors in this
program, 1t was explained in his be.
half today. is the funding of the debt
to America. He wishes to establish
instead of the present situation of an
unfunded debt, described as vague
and threatening. something definite,
tangible and dependable.
With this determination In mind M
Caillaux. it is explained. wants to
fund the French debt and feels that
now that he knows the members of
the American commission he has the
best hope in the world that what is
fair to both sides will come out OF
the negotiation.
French Reply Next Step.
This attitude of NJ. Caillaux. as re-
vealed today, was interpreted here as
hopeful sign for the continued prog
ress of negotiations. especially in view
of the fact that the next step obvious
ly is the French reply to Americas
rejoinder.
The American commission has def
nitely refused to accept the first offer
from France, in it's three-page memo
randum yesterday, but the French,
after two lengthy sessions yesterday
afternoon and this morning, have def
nitely rejected nothing. 1t was stated
authoritatively for NJ. Caillaux.
May Visit Mount Vernon.
Over the week end. experts of the
French delegation will continue their
work, although 1t was thought that a
few of them may be able to get in
some sightseeing. M. Caillaux, who
himself was importuned by the NOV
ing picture corporations to give his
Saturday afternoon and Sunday to
sightseeing, so that he might be
photographed in action, replied, it is
said, that he had more important busi-
ness on hand and could not do so. He
fully expects to visit Mount Vernon
before he sails for France next Friday
night, however.
In the American rejoinder of yester-
day, it is know this Government re
fused to accept the position Of the
French, and 1t was intimated further
in responsible quarters today that the
American statement also generally
proposed to France that a more ac-
ceptable basis would be along the
lines of the British-American debt
funding agreement. This latter point
was not officially confirmed. but 1t is
believed the American commission will
hold out for terms generally following
that agreement, which provides for
amortization of the principal in 81
years, with interest of per cent for
the first 10 years and 3lz per cent
thereafter. How far the American
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