Evening star., 1925-01-05
FRENCH DEBT NOTE
TURNED OVER TO
MELLON BY HUGHES
Document Probably Will Be
Laid Before Funding Body
This Week.
MORATORIUM MENTIONED
IN INFORMAL PROPOSAL
80-Year Payment Period Under
stood to Have Been Asked
by Clementel.

The French memorandum regarding
p ayment of Frances war debt to the
United States was transmitted today
by Secretary Hughes to Secretary
Mellon for his personal and private
Information"
Inasmuch as the document was pre-
snted by NJ Clementel. French
finance minister. to Ambassador Her
rick as an unofficial and private COM
munication, State Department Off
Cials would make no comment on the
suggestions embodied in it. They did
say. however, that lit was hoped the
Clementel memorandum might be
made the basis for a follow up"
Moratorium Discussed.
The memorandum is understood to
contain references to a settlement
plan, including a moratorium, with
payment over a period of so years
from the time the moratorium eX
pires, and interest payments during
the moratorium period at a rate of
one-half of 1 per cent.
Mr. Mellon becomes heir to this
much discussed document by virtue
of his position as head of the Debt
Funding Commission authorized by
Congress to receive and act upon all
offers of settlement by debtor ma
tions He is expected TO lay the
French suggestions before the COM
mission within a few days.
Meantime the diplomatic phases of
the debt question seem likely to re-
main quiescent, at least so far as the
United States is concerned. If inter-
allied debts are discussed during the
Paris conference of finance ministers,
the American representatives there,
Ambassadors Kellogg and Herrick
and James \. Logan, are expected TO
declare themselves unprepared to take
part in such a discussion.
War Claims Chief Concern.
The interest of the Washington
Government in the Paris conference
lies in the controversy over payment
TO the United States, under the Dawes
Tlan, of a sufficient sum to meet the
awards of the American German
Claims Commission. The American
representatives have been Provided
with Il copy of the latest American
memorandum to Great Britain on this
subject, which today was laid be-
fore the British cabinet. The COM
munication was not made public here.
but it is understood the United States
is standing firmly on it's opinion that
such payments should be permitted.
Neither does the administration
look with favor on suggestions that
because of British objections to the
payments the American claims should
h submitted to arbitration. 1t is
lclt very strongly here that the
claims are unassailable either on
legal grounds or with relation to the
equities involved, and that there is no
reason why an entirely satisfactory
adjustment cannot be made by direct
Intercourse between the governments
that will share in the German pay
mcntS.
officials Relieved.
Throughout the discussion Wash
ington had indicated a desire TO be
lenient and to extend the period for
payment as long as may be necessary.
While the Clementel debt memo
r3ndum apparently is not regarded as
q definite proposal, it does relieve the
minds Gf Washington officials in sew
eral respects. 1t acts as a direct ne
cation OF hints that NJ. ClementeTs
celebrated balance sheet implied a
also indicates that French officials
are giving serious thought to the
sort Of funding arrangement they
might be able to make.
The hope in Washington that this
first gesture VIII be followed up in
due course is based largely upon the
attitude of mind revealed by NJ
tlementel in his personal and unoffi-
'ial communication to Mr. Herrick.