Evening star., 1925-10-04

u,
than during the past week.
The story of that first mission visit
and its departure without an agree
ment Is told in direct fashion by Sec
retary Mellon himself in his 1922 an.
nual report to Congress. AS follows:
I'm July. 1922, the French govern.
ment sent a special mission, headed
by Mr.. Jean v. Parmentier, director
of the movement OF funds OF the
French treasury, to the United States
to discuss with the American commits
sion the French debt to this Govern.
ment. Mr.. Parmentier, upon his ar
rival, placed in the hands OF the COM
mission certain data relating to the
financial and economic situation of
France. He explained to the commits
sion the position OF his government in
respect to the funding Of its debt to
the United States. stating that he had
been designated by tho French gov
ernment to afford the commission
complete Information as to the f1nan-
cial condition of his government. but
that the latter did not consider 1t pos
sible at the present time to enter into
any definite engagements for q fund
ing or settlement OF its debt. he fur
ther stated that it was his govern
ment's desire to postpone for An indefi.
mite period considera ton Of this matter,
until the financial situation OF France
should becUne moro clear. particularly
as to reparation receipts from Ger
many. Tho commissions position on
the subject was explained to Mr.. Par
mentier. and especially its desire that
q funding of tho French debt should
take place in the near future. On
August II. 1922. Mr.. Parmentier in
formed tho chairman OF the commits
haf hA la nj vaE In
eminent informed Of the progress
made In tho negotiations, and that he
had received q cable i1structing him
to return for . full discussion with hts
government OF tho situation as it had
developed. The chairman replied that
in his view it could only De beneficial
II Mr.. Parmeutier should in person
discuss with his government the neko-
tiations which had taken place be.
tween him and the commission. Mr..
Parmentier returned to France short
ly after this conference"
Spent Week There.
The Caillaux mission spent a week
in Washington. Negotiations started
Thursday, September "a. and concluded
Thursday, October 1. The two COM
missions followed different lines OF ap-
proach. the Americans figuring on
basis OF the intefest ratio and the
French on basis Of annual payments.
Each in turn figured out tho other >
terms into its own general scheme,
The total offers were far apart. The
Americans also rejected security
clause demanded by tho French and
cOnsidered by them as vital.
The flrst French offer was $25 ,0e0.-
0o0 annually for the fret five years,
$50. .00O, 900 annually for the following
ffve years, SS0.sao. .0Oa annually for
the following 10 years and $50, GOO. 600
annually for the last ~ years.
In rejecting this. the Americans pro.
posed payments Of principal at
with interest at one-han of one per
cent for tho first year, increasing each
year by one-quartef Of one per cent,
until 3k per cent would be reached
at tho thirteenth year, and continued
through tho period.
This major American offer, was re-
jected by France, who proffered as its
last proposal: $4,000. 900 annually for
tho first ffve yeors; $6o. 1000. 600 an
ually for the next seven years, and
$1o0, 900, 900 annually the next IS
ing that the matter be feopened should
France be unable to meet payments.
This offer was rejected on the last
day of negotiations. and the last
resort" American ffve-year plan was
put forward, proposing that France
should pay so, ,ooo. 900 for flvs years,
a interest in full on the principal
and reopen tho negotiations At any
time during the ffvs years. This
would be but l2o,oee. 200 moro an
nuaify than the French now are pay
4fng in interest.
CaNlaux said he had not bsen
authorised to sign such . tentative
asreement, but would take 1t back to
his government in France, and would
not interrupt the neSotiat tiOns
which cannot fail to reach an agree
mont"
A note of hope was struck also by
the American commission in ftA last
abatement to the French. saying: we
believe that with peace, tho natural
progress Of industry and commerce
and tho recovering strength Of France,
q basis can BE- found at .tach later
date which viii meet the views Of
our TIVE countries"
The outcome Of negotiations caused
q slunp In the franc ana French
bonds. Unonicial reports that tho
American Government might coorce
France into action by froWninx on
more loans by private interests to
France have been met with explanA-
ton in Washington that this Govern
nasnt does not have law to exercise
such a prerogative. This however,
has received much public attention,
and the responsiveness Of American
business to unofncial requests Of its
Government have been stressed. Re-
ports continue that Europe will seek
iarse loans from private interests here.
Not only the American capital, but
the great capitals Of the world await
with ooGnA conc1rA fut0re develop
Trnktak 9tnA