Evening star., 1925-08-27
COOLIDGE |SHRM
ON FRENCH DEBT
Government Certain Paris
Can Pay in Full and at
3 Per Cent Interest.
RY DAVID LAWRENCE.

SWAMPSCOTT. Mass, August 21.-
President Coolidge has nothing more
TO add to the information given out a
few days ago to the effect that every
debtor country will be treated on its
ability TO pay
by officials TODAY after reading the
London dispatches telling of the Brit
ish- French understanding means that
the proposal will be rejected so far as
il affects the United States.
The plain truth of the matter is that
the American government is CON
WINGED France can pay better than
principal in full. Until something
arises to erase that conviction, all the
trial balloons sent up to affect the
American attitude can be swept aside
rs ineffective.
The fact that Alanson Houghton,
American Amba ssa dor to Great Brit
ain. participated in some of the IN
formal parleys between the French
and the British means only that the
two debtor countries. insisting upon
making their agreement conditioned
on American action. felt that the
American, Ambassador should be con-
versant with all the details. 1t is
no secret that they hoped together to
persuade him to make q. report recon-
mending terms To the French similar
to those granted Great Britain.
British Face Two Paths.
The British have everything to gain
and nothing to lose by the tentative
agreement they have reached with the
French. IT America refuses to grant
9 per cent interest charge the British
can reject the French proposal and
ask for more. Or they can decide to
l. ion -
work out her own salvation in the ne
gotiations with the French.
While a three-Cornered negotiation
has been carefully avoided by the
United States under Democratic as
well as Republican administrations
since the war. the British have sue
ceeded at last in bringing one about.
This does not altogether please Ameri-
can officials, for they feel still as Sec
retary Hughes repeatedly said to
European diplomats, what France
owes Britain is one debt, what France
owes the United States is another
debt. France is not inSolvent She
can pay her debts TO all, but each must
be the judge of what constitutes
proper terms.
america can afford to wait for a
settlement on her own terms. Britain,
pressed for money to Offset the heavy
States, in anxious to begin getting
something from France. Twelve
million five hundred thousand pounds,
or about so. S75 600. a year would be
welcome addition to British rev
enues.
1t is. therefore assumed that tn.
British, in order, 10 satisfy their own
public opinion. viii appear to be ask
ing better terms but in the end will
10
the French be compelled to make bet
ter terms to the United States. the
British will ask for an upward revi-
sion. but viii not, it is believed, stand
out to the bitter end for equal terms
with America. especially since the
British statesmen can take refuge in
the fact that the French debt to
French debt 20 Engla nd
Many Rumors Likely.
What American officials would
really like to see is per cent in
terest rate and full payment of the
principal to both Britain and the
United States by France.
This much may he taken for
gra nted-the French will not get an
abatement Of the principal due to the
United States They may ultimately
get cancellation of some of the in
tereSt charges Tor the period since the
war, but at least a per cent rate
will be required for interest payments
on future years.
The public may expect ali sorts of
changes of front and rumors and
feelers now that the real bargaining
period has begun. But in the end
France is expected to make America
2 much better offer than she made
Great Britain. 1t is suspected here
that the French, even if able TO pay
Britain better terms than have Just