Evening star., 1925-11-14
GREATER LEN|ENCY
TO FRANCE IS SEEN
italian Settlement May At
ford Precedent if Willing
ness to Pay Is Shown.
By DAVID LAWRENCE.

Although officially il is insisted that
the settlement with Italy does nor
mean corresponding leniency 10
France, there is no question but tLat
developments III the last "a hours IN
,dicale that the agreement with italy
IS the best thing that could have nap
pened from the French viewpoint.
. The manner in which the Italian
3 greement has been received, both in
this country and abroad, has been 4
pleasant surprise. The politicians
here have been tirnid about granting
yRny considerable reduction or cancel
Baton of war debts. They feel uli-
'Herently today. In otheT words, a ma
irerial cut In q war debt Is not to be
feared If such cut can he Justified
Italy Couid not pay III full. She had
the facts to prove it. And the Amerl-
ican Government checked up those
lfacts through its own investigators
and found that Italy was doing her
fiscal job in as efficient d manner as
possible. Having announced that
capacity TO pay" would be the basis
OF Americas settlement. there was no
Alternative but TO grant Italy what
amounts TO an so per cent cancellation
OF the principal and interest charges
combined over o. years.
Will Benefit by Trade.
The argument was advanced with
considerable force that if the United
States refused i settlement, conditions
IN Italy would grow worse instead OF
better. and the United States would
not have chance to collect for many
Years TO come. Also, the American
Debt Funding Commission was intiu-
~nced very largely by the reasoning
OF Secretaries Mellon and Hoover.
who feel that the American people
will be amply repaid in the long run
as a result OF the improvement in
commercial relations between Italy and
the United States. which is bound to
result from the invasion of Italy by
American capital III the form or in
dusIriRl loans.
But if this line of thought is 10 be
followed with respect 10 Italy, there
are many inside the Government circle
here who think the same logic applies
to France. The American statisticisns
say that a survey OF the resources or
France viii show clearly that the
French can pay. How much lenienCy
will be shown depends now on the
spirit in which the French approach
the resumption of negotiations. There
is no question that the Italians made
headway by laying all the cards on
the table face up. and dealing frankly
iiculty about the recent negotiations
with Franco was that the American
commission has the distinct impress
sion that the French did not want 70
pay and that tie parleys We're merely
a graceful gesture.
Must Show Willingness.
France can get at least 80 per cent
cancellation of her debt, and perhaps
more, but In order to accomplish this
il is felt here she must show a will
ingneS TO pay which has not been
noticeable before. Even the small
amounts which Italy has promised to
pay are really a serious burden upon
her people. but the Italians believe
that with American capital Italy's un-
developed water power and other in
dustries will come to the front. They
we're willing 10 place their faith IN
Americas hands and accept the ver
dict. If France would do likewise she
would obtain an early settlement with
America, her exchange would prompt
~ improve and her credit abroad
would be corresponding strength
ened.
E The wave Of emotion which swept
Italy has been noted here as we'll as
criticism in this country Of the Ital-
ian settlement. The Executive IS
confident that the debt agreements
already made viii be ratified by Con-
gress. Certainly If Congress approves
of the Italian agreement the way
win be opened for such reductions
TO France as will make il possible
for a real start to be made in the
dnterellied debt problem which must
be taken up just as soon as the
American arrangements with Europe
are completed.