Evening star., 1925-10-04

Locked behind steel doors of a Treas s.
ury Department vault are about $50
sheets of paper. some typewriter,
some engraved, each signed by two
french nameS-paper which assem-
hled could be carried easily in one or
binary brief case.
What will happen to this paper. rep.
resenting the French debt to the
United States. now that the Franco
American debt problem has entered
a sort of state of suspended anima.
ton?
This question. concerning the $4.-
200 100000 obligation pledged on those
sheets, is believed here to be of far
reaching Importance. not only to
France and America. but to every na.
ton involved in the intricate web Of
international postwar debts.
French Homeward Bound.
The French commission. carving
Americas s "last-resort" offer. is on the
Atlantic, homeward bound. to present
that offer TO the French government
But even should that offer be an
proved by both France and the United
States. which is uncertain, the fate of
Frances debt still would remain in
doubt until a future date, some time
y
get together again, in better hope of
reaching final settlement. Under
the agreement France would pay $40.
100000 annually as interest in full
America. with more confidence, in
the future of France than the French
men themselves, figured the capacity
OF that republic to pay in the next g.
wears at sum found unaccepta BILE to
the French, while, on the other hand,
the visitors offered payments unac.
ceptable to the Americans. They sim
ply failed to get together. Frances a
capacity to pay in the future proved
too great stumbling block. 1t is the
second time French debt mission
has been here without definite result.
Now Caillaux. head of Frances com.
mission. promises, in public. to come
back, perhaps in six months to take
up the burden again: but his tentative
promise has evoked no enthusiastic
confidence In American Official circles.
Paris Relieved.
Although CaillauN and his friends.
boarding the liner France, seemed un.
certain as to the reception awaiting
them. reports from Paris show great
relief that the American terms were
not agreed to.
Some relief has been expressed in
American circles, but the prevailing
spirit here seems to be disappointment
that France did not fund at better
terms than she offered. A feeling that
the French commission did the best it
could under the circumstances found
expression in some American quar-
ters. but there was far more grum.
bling than jubilation heard about
Washington yesterday because of the
virtual collapse of the negotiations.
What will be the effect on forth.
coming conversations with other
debtors? VIII the strange mo sigma
ture" parley with France encourage
other European powers owing the
United States to. expect better terms
than have already been agreed to by
six nations?
Italians Coming.
Partial answer to these questions
was given yesterday when it was an
nounced that Italy. the next largest
debtor, will not postpone the sailing
date OF its commission on account of
the Franco-American impasse. Specu.
latton, running rampant when Gail.
laux and his compatriots left. had pro.
posed that perhaps the Italians would
not even sai1.
Further answer to the problem of
future effect on negotiations is ex.
pected to be given this week, as the
debt commission from the republic of
Czechoslovakia, now in Washington,
opens formal conversations Tuesday
over funding of it's $117 900, 900 obli-
cation.
Italian hopes for as lenient treat
ment as possible in the matter of their
debt. however. have led American off1-
cialS to feel that, should there he any
effect whatsoever from the Franco
American affair. it would be more
likely to come from Rome than from
any other debtor capital. But off,
cially the American commissioners
have let slip no indications that they
are worried over prospects for the
Italian negotiations.
French Situation Complex.
A clear.cut picture of the present
status of the debt situation between
France and America seems impossi
BILE. for the reason that the situation
itself. according to officials and OBJ
servers. has become highly complex.
This uncertainty has lent keener in
terest to future negotiations. as
France was the first to fail in efforts
to write an agreement.
Seven nations have funded, setting
up a general line Of precedent in the
matter which it was expected would
have had some weight in the conver.
sations with France. In general these
six agreements follow the lines of the
first: Great Britain-interest at 3 Per
cent for the first 10 years, with 3h
per cent thereafter to the end Of q 81.
year period Of amortization.
France, however. according to a
statement Of the American commits
sion at the last meeting Of the nego-
tiations, Thursday, had offered to pay
only about l per cent.
Seven Have Signed.
The seven nations which have al.
ready signed agreements are Great
Britain, Finland, Hungary, Lithuania
Poland. Belgium and Latvia. All ac'
cords have been approved by Con.
gress. with the exception Of the Bel
gian and Latvian. when were recently
concluded during recess of Congress.
The unfunded debts to the United
States are IL In number. Out Of these
Armenias and Russia's appear at