The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1925-09-26
BRITAIN FEARS
CAILLAUX'S TRIP
To WASHINGTON
Suspects Plot B e hind
Debt Negotiations

WASHINGTON, Sept. "a. The
busiest spot in Washington today was
not the room where the French and
American financial experts haagled
over the problem Of negotiating
settlement of the $4,ooo,ooo,ooo war
debt, but the British embassy.
Spies trod on each others heels
coming and going with information
of secret meetings between semi-ob-
scure French and American agents
who talked cold turkey while Call
laux and Mellon were getting rid of
the usual polite piffle.
The British ambassador is reported
to have expressed anger when he was
shown an excerpt from the reply of
Andrew Mellon to the opening re-
marks Of Joseph Caillaux. Mellon
said: I'VE were glad to receive the
help which France extended to us
when we were fighting for our indie
pendence and we were eager to make
some return in Frances own great
need"
British agents see in this cryptic
remark hint that the U. S. govern
ment is willing to find an excuse for
letting France down easier than Brit
ain in the debt settlement. The rea-
sons for this willingness can be sum-
med under the heading Of business
and political.
Dangerous Rival.
America has leaped to the front as
Britain's most dangerous competition
1 in the capitalist world and both pow
hers are checkmating each other even
while they profess friendliness and &C
tualIy work in agreement In certain
I parts Of the world Caillaux is not
believed to have given up his idea
of a European continental bloc against
England, Frances historical enemy
Never have the relations between
France and England been more
strained than since the end Of the
world war.
The tentative proposals of NJ Gail
1aux have been submitted in writing.
Neither the French nor the American
commissioners would discuss them.
The conference opened without any
formalities. At a nod from Mellon,
Caillaux rose and consumed about one
minute and a half in his opening
speech. MELONS reply took three
quarters of a minute, ending with the
sentence that disturbed the British
ambassador.
CaiIlsux's plan is said to involve,
~ he
both as to time Of payment and in
terest rates, that the American con-
gress will swallow, and secondly, the
floating Of a gigantic commercial loan
to France in Wall Street that may run
as high as O0,OOO,OOO or even
S500,OOO,0OO.
France Needs Ready Cash.
The one, according to French finan-
cial opinion, is dependent upon the
other. If France is to undertake the
discharge of a debt of roundly $4,000
100000, four times the indemnity paid
by France-at the close of the Franco
Prussian war of 1870 then France
must have entree to private money
markets in the United States to OBJ
tain funds to consolidate her internal
debt and bring oyder out of the chaos
into which her national finance has
fallen, thru her militaristic adven-
lures, her plots against Russia, her
financing of Polish, Roumanian and
Czecho-Slovak conspiracies, against
the Soviet government and her Riffian
and Syrian wars.
Army and Navy Collectors.
Caillaux hopes to have easy access
to Wall Street just as soon as he can
fund the debt. The government has
advised Wall Street quite frankly that
any European government that would
not come across could secure loans
from the private bankers, but the
army and navy would not back up the
money barons in case the debtors de-
faulted. The bankers took the hint
and so did Caillaux. When Coolidge
passes the word around that the army
and navy will be ready to collect from
France in case of necessity, the bank
ers will call in the French borrowers
and over the cigars and champagne,
the shekels will be passed.
The grand total of the French debt,
now at slightly more than s4,200,O0O,-
900, probably will be scaled down to
about S3,400,000,000 by the time the
negotiations are concluded, this be-
ing accomplished by figuring the &C
crued interest at the new rate to be
agreed upon instead of the per cent
that the demand notes call for.
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