New Britain herald., 1925-10-02
TEMPORARY OFFER
ON Debt FUNDING
CONTINUED From First Page,

annual payments OF forty million
dollars from France FOR the next Ave
( years, Agreement on program OF
| anal settlement to succeed the pro.
posed temporary pact At It's saptra-
ton would he left for negotiations To
continue In the interim,
In Lieu OF Interest
The proposed five year payments
not only would be considered - IN
/ lieu OF all interest on the debl tor
| that period, by which In viIrc, Il
would amount 10 an ,nterts, charAe
/ OF about one per cent anNuNuN ,ad
also would take In the presegl I.p
! nual payments OF Sso,n0Q,Vno on he
! debt for purchase OF war suprlsNS
! With this supplying half OF the
amount. France under the Amchcur
/ proposal would be required only 70
double her present payments,
! The proposal rs II now stands
does not bear the signature OF n.
CaillauX who explained that in view
! OF his commission 10 sign only
final settlement I've questions his own
right TO act ON n provisional ar
rangcmcnt. In agreeing 10 lay II
before his government, however. he
gave the American commissioners
hope that II would meet With It's sp-
prevail But he emphasized that as
the continuance OF the present gov
ernment would depend upon its &C
ceptance by the French preliminary,
il was q matter requiring Its most
thorough consideration.
A Forward Step
While sharing the natural disar-
pointment on the American side that
a permanent arrangement was not
reached, Secretary Mellon nevsrths.
less regards the result az step
forward, chiefly In the closer under.
standing 1t has developed between
the two nations.
It was generally agreed that the
crux Of the whole problem was
plainly stated by the secretary In tbs
last memorandum read to the
French yesterday in which he de-
clared the nub OF the difficulty OF
the two commissions arises from q
difference In Judgment as to the fu-
ture capacity OF France to pay. The
American commissioners he added,
were prepared TO accept the French
q commissions views as TO the tmrne-
date difficulties OF France"
Accept French Figures.
In proposing the forty million dol
lar payments over the 1--WE year per-
Y Tod the American commission has &C
: cepted the figures proposed for that
y period by tho French themselves In
their last offer for 6S-year settle
y ment program which the Americans
rejected yesterday before submitting
" the proposal with which the CONVEX
IL sRtions ended,
Although, in tho aftermath, It has
become increasingly plain that some
members OF the American commits
d sion emphatically opposed through
n out the desire OF the French tor ii
safeguarding clause in any settle
n ment arrangement 1t is believed
some plan 10 protect France against
81 future inability 10 make payments
could have been worked out To the
5S satisfaction Of both sides IL othe,
81 phases Of the French offer had beel
approached the point OF acceptable,
ity.
Tho French Proposals.
Publication Of the memoranda pN-
Il changed by the two commissions dis.
Il closed definitely for the first timt
ri that the French had sought to de,
velop a settlement here along this
lines OF the tentative Anglo-Frenct
sttlement. In rejecting the first
French offer, Secretary Mellon I'M
dertook to show that II the prin.
ciples OF that arrangement were n
e: fact applied to the French debt Il
Il the United States Il would result In
& France binding herself to pay $751;,
100000 annually In the first 20 year,
M and S6l.000,0o0 year In the mex
~ years.
Viewing such payments as in
liz feasible" for France, Mr.. Mellor
II then presented the final proposal o.
2 the American commission for Q s.
~ year settlement program. With tn
z debt figured In lump sum under thi
- proposal at s4.02h, 000.o 600, Their
would have been concession Q
more than $2Oo,oOo.o0o In accruet
interest to France to start with.
M Beginning with a payment of sac,
I'M 100000 on account OF principal, Will
additional in interest at one-hslt o
IS one per cent for the first year. IN
1& payments would have increased on
~ graduated scale until the intsres
payments reached rate of three an
|s one-half per cent In the 18th veal
M TO remain at that rate through tn
Nd balance Of the period,
In rejecting the French counter
proposal to this, Secretary Mello
IS pointed out for the American com
S. mission that 1t carried an intere:
charge OF less than one per cent
year and objected TO the sacrifice
H which he said II would entail IA
American taxpayers. He observe
further that the character OF IN
conditions attached made the pay
ments entirely uncertain"