Evening star., 1925-01-04
HERR|CK CONTINUES
NEGOTIATIONS WITH
FRENCH ON DEBTS
Regarded as Having Been
Given Impetus That Can
not Be Stopped.
INFORMAL PARIS NOTE
MAY NOT BE FORWARDED
Officials, However, Continue to
Hope for Early Action on
Loan Funding.
~ the Associated Press.


PARIS, January 3.-Although the
gnemorandum of Finance Minister
Clementel concerning the funding of
the French debt to the United States
a. considered by the government as
entirely unbinding, unofficial and a
personal statement of French public
opinion, it has, nevertheless, in the view
Uf political leaders, posed the ques-
ton of French war debts in such a
way that negotiations must continue.
The suggestions of NJ Clementel,
which were handed to American Ambas-
& dor Herrick in the form of a memo
13ndum, it is now indicated in we'll
informed although unofficial French
sources, are probably insufficient to form
the basis of a serious conversation. The
American ambassador is holding up these
suggestions pending further personal
talks with French officials. 1t is even
thought in political circles that they
lnay never be cabled to Washington in
their present form.
Sets Question Moving.
1t is recognized by the French press,
however, that contact between the
French minister of Finance and
Americas representative in Paris has
Eet moving the question of funding war
debts and it is felt that something must
come out of it. The Temps, which for
the moment is no longer the semi official
organ of the government, but which
still often reflects the views Of the
foreign office, says:
The question of interallied debts
has now been posed in all its ampli-
tude 1t was thought for a long
time that the best way of wearing
out the interallied debt question was
not to speak of it and let 1t gently
fall into oblivion. But the misfor-
tune is that each year the weight OF
the debts grows heavier through the
accumulation of interest. and the
more they grow the more anxiety
the creditors show"
The same newspaper reveals the
lingering feeling in French minds
that the cancellation of war debts
would have been just. 1t realizes.
though that the time has come to
clearly define s,the French attitude,
which must not lend itself to any
Misunderstanding" The Temps con-
tinues: France does not repudiate
her obligations. She wants to pay.
but only what she really owes, and
she can not pay unless she is paid
by Germany the reparations owing
her. Clear political logic, general
tary justice require that France
profit by the revision of interallied
debts, corresponding, at least, to the
revision of reparations."
Attitude Representative.
The Temps article is declared to
represent the general attitude of the
press and the opinion of the govern
ment as repeatedly expressed to those
coming into contact with 1t since and
before Premier Herriot took power.
NJ. Herriots ambitions Is known to be
TO settle all outstanding problems, in
Guiding debts, but it is said he finds
difficulty in applying to money mat
trrs the liberal policies from which
Germany has benefited on account of
the financial difficulties with which
France is struggling.
The first effort of the French, it is
anticipated in political circles, will
be to obtain larger percentages of
reparations than provided in the Spa
agreement which gave them SO per
cent.
Minister Clementel has pledged him
self to the Socialists to raise this
question at the coming meeting of
the allied finance ministers here. If
he succeeds in obtaining an increase,
the debt settlement will be easier.
May Ask Revision.
1t is understood that the French
viii ask the finance ministers con-
ference to revise the allotment of
reparations on the basis of material
damages sustained in the war. not
counting pensions. This would af-
feet the British particularly, since
the bulk of their share of reparations
i made up by pensions claims. The
issue thus raised is expected to pro-
woke a sharp conflict in the coming
conference, with Great Britain resist
ing a revision Of percentages and
France standing on the principle that
she cannot reduce her share of the
allied claims on Germany and at the
same time pay in full the debts she
contracted in order to win the war.