Evening star., 1925-09-30
DEBT SETTLEMENT
IN SIGHT; MUTUAL
CONCESSIONS MADE
Differences Between French
and U. S. Experts Rapidly
Composed Today.
$780, ,COO,0 900 YEARLY
NOW ASKED OF FRANCE
American Mission Considers Secu.
rity Clause Stumbling Block
in Past Sessions.

tiations for funding Frances four-bil-
lion.dollar debt to the United States.
At noon today a picked few from
both commissions, headed by Secretary
of the Treasury Mellon and French
Finance Minister Caillaux went into
session to thrash out the question
of a security clause. which the French
have insistently requested as a part
of any funding agreement.
The gulf between what the French
have offered to pay and the Amer.
leans have offered to receive has been
narrowed. AS result of informal
conferences late yesterday when the
Americans, 1t is understood. lowered
their figure to $130,000,000 for the
average annual payment over period
of 81 years. The French has offered
an average annual figure of $780,
000, 900.
Should the two groups in session at
noon today come to agreement on
some kind of a security clause which
would be acceptable to the French
Parliament and American Congress, 1t
was the definite indication today that
the two commissions may be able to
bridge the gulf OF $3o.000,000 in the
annual average figure and come to a
successful conclusion Of the debt par
ley.
u. S. Position Explained.
The security clause has been a big
factor In the minds OF the French. Up
to Yesterday afternoon the Americans,
it had been explained by a spokes-
man. had declined to consider such a
clause. taking the position that a debt
was a debt, and that II unforeseen con-
rfngencies arose and France defaulted
the matter would have to be reopened
anyhow.
The security clause was before the
sntire American commission for more
than an hour this morning. The
Americans met at 10 o'clock and, 1t
was explained afterward. devoted near
ly all their attention to this subject.
Differences are known to exist In the
American commission, some congres.
sional members having declared in.
formally against such clause. So far
as could be deduced from an Ameri-
can spokesman after their commits
sion met this morning. there seemed
to be hope that the Americans would
be willing to so some distance, at
least, in the formation OF some kind
of general clause. 1t was believed.
acceptable to the Americans which
made definite reference to repara-
tions, or which made the French
payments to America contingent upon
successful continuation OF payments
from Germany under the Dawes plan.
France Conciliatory.
From French sources 1t was learned
today that should a security clause
xtcfo 70 fhn rh "a
there would be In all probability
further concessions by Caillaux in the
matter of annual payments.
The general situation overnight
seemed to have improved perceptably.
especially with the revelation that the
Americans yesterday afternoon in In.
formal meeting with the French had
dropped their figure for the average
annual payment from about $50, ,000,-
900 to $3.50. 900.
The question of leniency to France
during the first few years of funding
was understood to occupy a position
of more importance to the French
than to the Americans. The French,
at present, feel that they cannot pay
more than $30,000.o00 year at first,
increasing this figure slowly during
the first 10 years.
At the conference today concerning
the security clause there were five
members of each commission. The
American party included Secretaries
Mellon and Hoover. Senator Smoot,
Representative Crisp and Secretary to
the American Commission Winston.
Both Republicans and Democrats were
included, Representative Crisp repre-
senting the latter.
CailIaux Encouraged.
NJ Caillaux according to sou-ces
close to him, now feels very much
more encouraged over the prospect of
successful funding. while on the
American side there were definite evi.
dences that hope has increased. Fol.
lowing the informal session late yes
terday afternoon at the Treasury, a
spokesman for the American commits
sion admitted that progress had been
made. and that the question of Sc
curity clause had been opened for con-
sideration.
The informal conference last night
came as a surprise to the public and
observers, as 1t had been understood
q plenary session of the two commits.
sions would be held yesterday after.
noon at o'clock. Instead, this meet.
ing was postponed. 1t was learned at
that time and some time later 1T was
further discovered that a little meeting
OIL IAc IcdOcT6 WhS eOAil5 oti ia CSC'
retary Melons private office.
At this meeting there were NJ. Gail.
laux. Secretary Mellon, Secretary
Hoover and Undersecretary Winston.
After this session NJ. Caillaux also
saw Mr.. Winston in a special confer.
ence with a group Of experts.
Anotheer factor contributing to M.
Caillaux's increased optimism was re-
vealed by him last night at his con.
ference at the embassy. With much
enthusiasm the French leader said he
had received word of his election as
speaker of the Council General of his
department, a council corresponding
TO an American State Legislature. NJ.
Caillaux feels that this election from
his home constituency In the Depart
ment of Sarphe, is a definite express
sion of confidence in his policy.
The French delegation has been
appealing direct to congressional lead.
ers outside the Debt Funding Com
mission. 1t was revealed today when
Senator Curtis. Republican leader.
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