New Britain herald., 1925-08-26
u 5. AMBASSADOR
 MEETS CA|LLAUX
Discussion Of French Debt Is
 Believed to Be Mission

l London, Aug, .6 (Pl-The meet lng at luncheon yesterday between Alanson B. Houghton, the American ambassador, and NJ, Caillaux. the ! French finance minister, is regarded here as tho outstanding feature up 10 the present time in the French debt negotiations and an incident of the highest importance,
 M, CaillauX met Mir. lIoughton at a luncheon at which the American ambassador entertained both Win ston Spencer Churchill, chancellor of the eXchequer and the French minister. All reports of the Conver- sattons between the three statesmen and the differences drawn from them seemingly confirm the suggestion that the general international debt situation was discussed, and that nothing will be done in London to- ward settling Frances debt to Great Britain until it is known what ar engagements France can secure from the United States looking to the wip- ing off of her debt 10 that country.
 The best known political writers in the morning newspapers today say in effect that there can be no Anglo French settlement without the participation of the United States, which is the real arbiter of the situ- aton here. From this has arisen in some quarters a suggestion that there may be a tri-partite arrange ment between the representatives of the United States, Great Britain and France on the debt question.
 The Daily Mail says it understands that NJ. CaillauX expressed the opinion to Mr. Houghton that the entire debt problem should be set tied through a threc-sided agree mcnt It adds that MT. Houghton was in agreement with this M. CallauX, then, according 10 the Daily Mail. told Mir Churchill that the agreement between Premier | Baldwin and Secretary of the Treasury Mellon on the Anglo-Amer- ican debt ought to be revised to that end.
 The Daily Telegraph says it has been made clear to NJ. Caillalx that Great Britain cannot clinch any bar gain with France until it is definite ly known what terms the United States will require from France. Emphasizing that Great Britain cannot reCede from the position that France must make Great Brit aims payments pari passu with those she makes 10 the United States, the Daily Telegraph's diplomatic writer adds:
 "Mr. Churchill and NJ. CaillauX therefore have turned their thoughts in the direction of America to find out if the present Anglo-French ncgotions and the impending Fran co-American negotiations could CO., ordinate either through the usual diplomatic channels or a special tri- partite conversation. It is true the American debt funding commission lng of the American with other debt funding agreements and II IS lm' probable Washington would consent 10 direct tri-partite agreement, but there might be an informal alterna. tive, the French acting as interme- diaries"
 The writer adds that rumors are current that both Mir. Churchill and NJ. CaillauX may go 10 Washington He thinks this unlikely as far as Mir Churchill is concerned, but he sug' gests that Great Britain might fol
 low the American precedent and appoint an official observer in Wash ington who would he in close touch with the Franco-AmeriCan negoti. atons.
 As far as settlement of the Anglo French debt question is con