The Bismarck tribune., 1925-08-26
REACH ANGLO
FRENCH DEBT
SETTLEMENT
Two Per Cent Fixed as Inter.
est on 623 Million
Pound Debt
I E X MS 62 Y E A II S
Annual Payment of 12.50O. 600
Pounds Set as Install.
ment
T ERMS 62 YEARS

London. Aug. 26.-Thc Brit
ish chancellor Of the cxchequcr.
Winston Churchill. and the
French finance minister. NJ.
Caillaux. today reached an agree
mcnt in principle on the fund.
ing Of the French debt to Great
Britain.
1t was officially announced that
an agreement has been reached on
the basis in principle, of 62 annual
payments Of l2,50O.OO0 pounds on the
sole responsibility of France. sub
ject to an agreement being reached
on various matters Of detail and sub
ject to governing condition Of pro-
portonatc equal treatment by France
of her creditors. NJ. Caillaux. while
reserving his opinion on these prop
ositions. undertook to lay them be-
fore his government.
The agreement in principle between
Mr.. Churchill and NJ. Caillaux allows
France partial Moratorium until
1880.
Under this agreement France is to
pay Great Britain IA little more than
two per cent interest annually on
her debt 623,OOO.OOO during the
years in which England is making
payments on her debt to the United
States. After this time the interest
payments are to cease and the prin-
cipal Of the debt is simply to be
wiped off the slate.
London, Aug, 6-(H)-The meet
ing at luncheon yesterday between
Alamo B. Houghton, the American
ambassador and NJ. Caillaux, the
French finance minister, is regarded
as an incident of the highest i'm
portance in the negotiations here
over the war debt of France to
Great Britain.
The ambassador entertained both
Winston Spencer Churchill, Chancel-
lor of the Exchequcr and the French
minister. All reports of the conver-
sation seemingly confirm the sug-
gestion that the general debt situ-
alton was discussed and that nothing
will be done in London toward sett-
ling Frances debt to Great Britain
until it is known what debt arrange
ments France can make with the
United States.
Political writer's today say there
can be no Anglo-French settlement
without the participation of the
United States-the real arbiter of
the situation here.
From this has arisen, in some
quarters, a suggestion that there may
to tri-partite arrangement among
the three nations on the debt ques-
tion.
The Daily Mail says it understands
that Caillaux expressed the opinion
to Mr.. Houghton that the entire debt
problem should be settled through
IA three sided agreement. 1t adds that
Mr.. Houghton was in agreement with
this. NJ. Caillaux then, according to
the Daily Mail, told Mr.. Churchill
that the agreement between Premier
Baldwin and Secretary Of the Treas
ury Mellon on the Anglo-American
debt ought to be revised.
The Daily Telegraph says it has
been made clear to NJ. Caillaux 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.
AS far as settlement of the Anglo
French debt question is concerned
there seems to be no hope that an
agreement will be reached this week.
It is the purpose Of NJ. Caillaux to
return to Paris tomorrow with new
proposals to submit to the cabinet
and the belief prevails that Mr..
Churchill will likewise suggest fresh
ideas on the subject to Premier
Baldwin and the members Of his
government.