Evening star., 1925-09-29
U. S. Demanding $780,
600, 900 as Yearly Pay
ments, With Visitors
Offering $100,OoO,OO0.
SECURITY PACT is ISSUE
BROUGHT UP BY MISSION
Both Parties Are Hopeful That
Apparent Impasse Will Pass
and Terms Be Reached in 48
Hours That Now Remain to
Complete the Negotiations.

Franco-Anerican debt negotia-
tions today entered crisis.
A joint session Of the two debt
commissions is scheduled for ;
O'Clock this afternoon, with the two
bodies now holding divergent posi-
tions on the annual payment by
France on her S4.000,00O000 debt.
the Americans demanding about
fifty million dollars year payment
more than the French are offering
to pay.
This represented the result after
concessions by both sides, it was
learned today when the details OF
both French and American offers
were revealed.
France on the opening day last
Thursday offered through Finance
Minister Cailiaux an average annual
payment of about S90,000,000 a year
over a period of 62 years. This was
calculated to repay all the principal,
according to the French, at mod
crate rate OF interest. The first
French offer also named tentatively
at first q S25,000.000 figure for the
first year as beginning, to be in
creased in later years.
Counter Proposal.
The American counter proposal, fol
lowing somewhat the British-Ameri-
can agreement, offered France figures
of an average of S165, 100000 annual
ly for the period of amortization.
Caillaux responded in his second
proposal by raising the average an
nual payment from s90,000.000 to
s100 900 900, with provision that the
payments for the first few years
would begin with S3O,000,000 instead
of SIS ,00o. 900.
Yesterday afternoon, it was under
stood, the American Commission of
fered a concession in which it gave
the French an average of S157 900, 200
annually. The French also have
CLEANED an intimation that the Amer
can Commission would come down
to $3.50 100000 average annually, with
leniency during the first few years.
There the situation stood today,
with the French at $780, 900 900 and
the Americans at S150,000, 900, each
contending, it was understood prior to
the session. for their position, but
each still hoping that some way out
| of the apparent impasse might be
reached.
From the French viewpoint. how
ever, it was learned definitely today
that though Caillaux is superficially
optimistic there is less chance today
| than ever of reaching a final agree
ment, unless the American Commits
| sion makes astonishingly larger con-
cessions.
Figure Deemed Impossible
The outlook for France was further
dimmed today by dispatches from re-
liable sources in Paris that Premier
Painleve considers the American pro-
| posal of s157.0o0, 900, or even s15o.-
600 900 average a year as wholly i'm
possible for France. 1t was further
said from the same source that Pain
| leve had given the fiat declaration
that should CaillauX accede to the pro-
| posal there would not be the slightest
! chance in the world of the French
Parliament ratifying it.
| Further indications from France
that the American figures would be
! unacceptable came in the nature of
reports that so out of SO of the gen
eral councils of the French depart
ments, corresponding to State Legis-
latures here. had protested to Paris
| against what they understood to be
I the American offer. In American
circles, indications were complex. One
member of the commission as late as
this morning appeared hopeful that
some ground for discussion may he
| reached. Another member of the COM
mission late yesterday admitted nego-
tiations We're in a serious stage.
A deadlock or an agreement might
result, according to this member.
48 Hours Remain.
The French plan to leave Washing
ton Thursday night, leaving less than
| 4S hours to the negotiations. Not
only the figures of 10000. 900 annually
separated the two commissions.
There is the disputed factor of the
so-called security or cafeguard clause
! The French feel that some such
language should be included in an
agreement to protect their currency
and economic status against the dan
| gers of dire straits of the possibility
| of such heavy payment sinking the
| franc exchange rate to such a level as
| to amount to a public calamity to
them. On the other hand the Ameri
can commission, 1t was said by one
member, does not consider such Sc
curity clause necesSark. The French
owe America, according to this COM
missioner, and if some contingency
should arise, they would still owe the
debt, nevertheless, and should default
or postponement be necessary the mat
| ter would have to be reopened, just as
1t is now reopened.
To the American contentious the
French commission is reported a feel
| ing that America has been among
| those who insisted upon such a Sc
| curity pact to protect Germany in her
payments to France, and yet the same
| American Government is now denying