Evening star., 1926-04-25
CHANGE IN FRENCH
OFFER NECESSARY
TO GET APPROVAL
Commissioners Hopeful Due
to Increase Over Terms
CaiIIaux Proposed.

Frances new proposal for settling
her $4,000 900 900 war debt TO the
United States was given formal Off
cial scrutiny yesterday by the Amer
lean Debt Commission. with ind1ca-
tions that changes would be necessary
to assure its approval.
Taking up the offer as the possible
basis for an agreement, the commits
sion discussed 1t for an hour and
half and then decided to meet again
tomorrow. While some members be-
lieved revision undoubtedly would be
necessary, the fact that Ambassador
Berenger exceeded the best offer made
bv the unsuccessful mission of Joseph
Caillaux last year reacted we'll with
the commissioners. who are hopeful OF
a quick and satisfactory conclusion of
the negotiations.
Immediately on conclusion of the
commissions session yesterday Sen
ator Smoot of Utah, one Of its mem
bers. went back to the Capitol and
called up the Belgian debt agreement
and by doing so brought into action
Senator Reed. Democrat, of Missouri
who renewed his attack on both the
debt commission and the administra
ton. Senator Borah. Republican n,
Idaho and others who opposed the
terms they said the commission had
allowed at the expense of the Amer
lean taxpayers.
Total Offer $1,000, ,0O0.0 900.
1t was generally understood that the
total of the French offer was in the
- Is11
interest payments over the 62-year
period. This is almost 81 900 900 .00C
higher than the CaillauX proposal
Some doubt exist ed in the commission
however. on the advisability of accept
ing an initial payment Of only $25,
600 900 as against the $4,000 900 an
nual first payment at one time offered
by Caillaux.
The French argument is understood
to be that the depreciation in the eX
change value of the franc makes il
more severe for France to meet its
first payments now than would have
been the case last year. One refiec.
tion of the American attitude is that
Frances internal debt is correspond
inEly lowered.
One of the problems worrying the
negotiators is believed to be an in
kind of a clause which would come
to the aid of France in case the Ger
mans defaulted on reparations. There
has been no inclination on the part of
the American commissioners even TO
consider such proviso, which is held
to he fatty against the policy of this
Government.
Two Offers Compared.
Some of the time of yesterdays
meeting was taken up with a com
parison of the offers of Caillaux and
that now before the commission.
In explaining the Belgian debt to
the Senate, Senator Smoot said TIE
Americans had foregone the interest
on the postwar debt because ot pro-
vision in the Versailles treatv, signed
by President Wilson, but not ratified
by the Senate. This provision would
have had Germany reimburse Belgian
debtors in bonds.
I'VE took the moral obligation into
consideration" he said, but I want
to say that Belgium Is going to have
she has obligated herself to make"
Leaving the moral question aside,
he said, the settlement was about the
best that could have been obtained.
1t returned about So per cent of the
principal, he contended, and about AZ
per cent of the interest charged at
the rate of 5 per cent up to the date
the settlement was reached.
Senator Borah objected to the re-
version to the Paris agreement, de.
claring he could not understand why
that document was now brought in
Co1t;puod IN DaCa CoI,v,r ~