Evening star., 1925-01-16
BRITISH PROPOSAL
ON DEBTS CREATES
SCH|SM IN FRANCE
BaIfour Offer Reiterated to
Paris by ChurchiIl-$75O,-
100000 Asked.
u. S. SEEN AS GETTING
BULK OF PREPARATIONS
London Plan Will Give America
rs Per Cent of Total,
Official Says.
ny CONSTANTINE BROWN.

By Radio to The Star and Chicago Daily News
PARIS, January Rehabilitation OF
the letters exchanged by winston
Churchill and Finance Minister Glenn
entel regarding the settlement OF
Furope's debts to Great Britain has
caused a considerable stir in political
circles, particularly among the anti
Herriot elements, who are advocating
n "wait-and-see policy" and who were
in favor of postponing any financial
parleys until Frances financial situ-
alton had improved sufficiently so
that the nation would be less depend
ent upon American and British finan-
cial markets.
Mr. Churchill renews the offer made
TO France by David Balfour and re-
fused by former Premier Poincare, by
which Great Britain is asking her
European debtors. including Germany,
to refund only the amount she owes
the United States.
According to the Spa arrangements.
IL Germany fulflls the obligations she
accepted under the Dawes plan. Eng
land will receive from Germany
$4,000, 900. 900, and the other European
countries must make up the balance
of $500, 600. 900 which she owes the
Cntte0 states FRANCES snare In this
refunding scheme will amount to some
$3.50, 100000. This Is considered a very
substantial reduction, since her actual
debt to Great Britain comes close to
$4,000. 00O,0 900.
Method Subject to Farley.
The modality of refunding the
$750,000.000 Will form the subject OF
an Anglo-French conversation next
March. French financial experts sug-
gest that France should give up 10
per cent of her reparations annuities
to Great Britain, thus receiving only
AZ per cent of the reparations, instead
Of the So per cent, agreed upon at
Spa and that the other European
creditors should follow the example by
giving up proportionate percentage.
1t Is estimated that in this manner
Great Britain will receive As per cent
of the German reparations, which will
be used for paying the British debt
to the United States. 1t is believed
that Finance Minister Clementel will
shortly make a similar proposition
for the settlement of the debt t4toethe-
American Government. and IL the
American debt commission finds the
French suggestions acceptable, France
and the rest OF the European credi-
tors will give the United States some
30 per cent of the reparations
sny L. s. Gets Big Share.
Thus" stated an influential sena-
tor Thursday, the United States
which did not suffer material damages
during the war will receive Is per-
cent of the reparations due to be paid
by Germany for the distinctions per-
petrated upon European soil, and
countries like France. which were
crippled by the war will hardly re-
ceive 10 or Is per cent for the re-
construction of their devastated re-
gions."
The Nationalist journals, taking II
for granted that this proposal will
be Immediately accepted by the
United States, writes: Under pres
sure of the American bankers sup
ported by their Government. we have
reduced our claims against Germany
to less than $4,000, ,o00,000 This sum,
If 1t were given to France alone
would be hardly sufficient to pay for
the damages she suffered.
We now find that, after having
given Germany such enormous reduc-
tions, which will enable Germany to
fight us economically until she can
night us with arms again, almost
three-quarters of these sums will go
to the United States, and afterward.
under various forms, will return to
Germany again."
This view, however Is NOT shared
by the government, which believes
that II satisfactory refunding ar
rangement can be reached American
and British financial markets will
need outlets for their capftal and
will need 1t under satisfactory condi-
tions to European countries, helping
them with their development. which
at present is handicapped by lack Of
credit due to the non-payment of the
war debts.
Copyright. 1926. by Chicago Daily News CO..
BUDGET TO BE BALANCED.