Evening star., 1926-05-01
JUGOSLAV|A DEBT
ACCORD REACHED
Agreement Covering $751;.
100000 Obligation to Be
Sent to Capitol at Once.

BN the AssOt1dIeU ffess.
An agreement was reached today
for the funding of the $51 900 900 war
debt of JuGoslavia to this country.
The settlement apparently complet-
ed the administration war debt.
funding program so far as II will be
possible to do so for the present. The
JuGoslavian terms. providing like the
others for payment over a long period
of years. is expected to so to the
capitol with a request for ratification
~ this session of Congress, and to
take its place there Immediately be-
hind the newly-negotiated agreement
with France.
Others Already Ratified.
These two are the only settlements
now awaiting congressional approval.
settlements with Italy. Belgium and
four other countries having been re-
Gently ratified
Russia and several smaller coun-
tries have not yet funded their war
borrowings here. but the diplomatic
situation and other considerations
make negotiations of settlements with
these nations unlikely for the time
being.
opened the way t. France to negoti-
ate for private loans In the United
States. with the consent of the Wash
ington Government.
Plan Will be Approved.
High administrative officials dis
closed today that the Federal Gov.
ernment would approve Of such loans
by American bankers without waiting
for ratification by the Senate Of the
debt funding agreement.
Thus far no request for private or
other loans to France has been re
ferred To Washington by America n
fina nciers France is i'm need Of q
gold reserve for franc stabiiza ton
purposes. however. Negotiations for
an advance of private American capi-
tai are reported as proba BILE.
Over 6.-Year Period.
Under the settlement reached To.
day with Jugosla via. that country
will pay total of 5.l71 ,635. princi-
pal and interest, over period of 6.
years.
Payments will start at. 5000 900 a
year for the first five years. increas.
ing To $375 .0O0, which will he paid
annually for the last so years.
Interest charges will he dropped
for the first. IL years. Thereafter
they will be AT one-eighth OF per
cent for 3 years, and then increase
gradually To 3l2 per cent. which will
be the rate during the last - years.
With the French settlement re-
IDp,. Il t,no .a,.x-
evil" which must he supported. the
American Senate already has had a
taste of the bitter opposition ii faces
from those who fought the Italia n,
Belgian and other agreements re-
Gently approved.
Submitted by President Coolidge as
fair and just to both governments,
the French agreement was greeted by
Senator Reed. Democrat. Missouri,
with a demand for comprehensive
investigation by the finance commit
tee Unless every document. paper
and record of the American Debt Com.
mission relating to the negotiations
was examined. he said difficulty"
Senate action.
Smoot to Fight Delay.
l. Chairma Smoot of the fina nee com
mittee, a member of the commission
expressed willingness to call on the
Treasury for pertinent documents
but when Senator Harrison. Democrat.
Mississippi. wanted to know whether
he would cooperate in real investi-
CATION" he retorted that he did not
intend TO cooperate 10 hold this set.
tlement up until after adjournment"
Inquiry into the actual capacity of
France to pay was suggested DN
Chairman Borah of the foreign rela-
tions committee. who held that
France is the most prosperous nation
in Europe and has heen prosperous for
the last three years.