The midland journal. (Rising Sun, Md.) 1885-1947, 1925-09-04
NEWS review OF
CURRENT EVENTS
CaiIlaux Scores Heavily in
His War Debt Agreement
With Great Britain.
By EDWARD W. PlcKARD

TOSEPH CAILLAUX, finance minis
y ter Of France, and Winston Church
Ill, British chancellor Of the ex-
chequer, appear to have put one
over" on the United States. The
Frenchman went to London to fix up
the Franco British war debt affair,
and after various conferences and a
stormy cabinet session, Mr.. Churchill
suddenly offered to accept from
France $60,625,OOO annually for 80
years from her own resources ire
spective of the German payments I'M
der the Dawes plan, with a partial
moratorium for France until 1880.
Put in others words, France is to pay
Great Britain a total of $3,75S, $780,
600, representing payments of per
cent interest on the total debt. but
no payments on the principal. which
will be cancelled at the end of 81
years. Caillaux naturally accepted
the offer at once and 1t was believed
it would be approved by his govern
ment.
This all sounded nice and generous
on the part of Churchill, but the joker
came in his reservation that the offer
was conditional on similar terms be-
ing granted France by the United
States. In his official statement he
said: Ellis majesty's government made
it perfectly clear that any arrange
ments between America and France
must be governed by the principle that
Great Britain must receive from
France proportionate and pari-passu
payments to any she may eventually
make to America. 1t would be no
service to Europe, already so griev-
ously stricken, If the sacrifices of one
creditor of France were merely con-
duced to the advantages Of another.
Therefore any present Anglo-French
agreement should be considered as
merely provisional pending the Wash
ington outcome"
To understand the situation, it
must be remembered that the United
states funded the British and Belgian
debts on basis of principal and 31s
per cent interest. If now we grant
the easier terms to France, it is as
sumed Great Britain will ask re-
vision of the agreement made with us
by Prime Minister Baldwin on the
ground that she is entitled to the
same terms as are granted to France.
If we demand more proportionately
from the French than Churchill asks,
America will be pictured as Shylock
and France will have an excuse to
break off the negotiations in Wash
ington.
Caillaux, 1t is believed in London,
will come to Washington in advance
Of the French debt commission for
the purpose of arguing that the
United States be no less generous
than Great Britain. He undoubtedly
has scored a create triumph and is in
a strong position. Churchill's status
is less certain. His offer to Caillaux
was opposed vigorously by some Of
his colleagues in the government and
is being bitterly attacked in the press.
There are predictions that he has
wrecked his career.
President Coolidge has let it be
known that in his opinion the debt
settlements with Britain and Belgium
should not necessarily be copied in
dealing with France and italy. The
arrangements with those countries, he
thinks, should be entirely in accord
ance with their. ability to pay: and
he adds that they should be afforded
every opportunity to present to the
American debt commission any reason
they may have for asking more lib
eral terms than those granted to
Great Britain.
ORANGE won another diplomatic VIC
tory last week when the German
government decided TO participate in
conference of legal experts the pur-
pose of which is 70 find basis on
which conversations may be held for
the formulating Of security pact for
Europe. Doctor Gouss of the foreign
office Was selected as the German
representative. French Ambassador
De Mayge.ie, in submitting to the Bcr-