Evening star., 1926-04-22
OFFER STILL To BE o. KID
Mellon to Call Debt Commission to
Pass on Terms.
By the Associated Press.

faSS on TERMS.
By the Associated Press.
With approval of the agreement for
settlement of the s., 900 ,000. 900 Italian
war debt voted by the Senate, atten-
tion turned today toward the negotia-
tions for funding the $4,o0o.O0O,OO0
French debt.
The bitter fight over the italian set
tlement, however, has not been end
ed with the 54-33 vote of the Senate
late yesterday, opponents having laid
the basis for reconsideration, and the
agreement, already ratified by the
House, will not be sent to the Presi-
dent pending this action.
Secretary Mellon, chairman of the
American Debt Commission. now
hopes for a settlement Of the French
debt to the United States before ad-
journment of the present session OF
| Congress.
Body May Meet Tomorrow.
This was indicated plainly today at
the Treasury, where IT was learneu
that the way toward an understanding
between the two countries had been
facilitated BY informal conversations
between Secretary Mellon and Ambas-
sador Berenger, and that meeting OF
the American Debt Commission to re-
open the matter probably will be called
for tomorrow.
These developments followed closely
upon the heels of announcement from
Paris that the long-pending question
of Frances debt to the United States,
! which now stands at s4,304, 900 900.
had virtually been settled, and re-
mained only to be signed.
Secretary Mellon would not go so
| far as to say that a settlement had
been reached between himself and
Amba assador Berenger. as had been
| indicated in the dispatches from Paris.
Their conversations, Secretary Mellon
said, had been altogether informal
! without a definite proposal of terms
having been offered. 1t was true,
however, the Secretary indicated, that
the matter of the French debt ques-
tion was much further along the road
to successful settlement.
The Caillaux negotiations, which left
the matter suspended indefinitely, and
the informal interchanges of opinion
in the interim had helped to pave the
way for the formal negotiations to
open perhaps tomorrow. 1t was eVi-
dent Secretary Mellon today was much
more hopeful than he has ever APP
peared concerning the prospects for
success.
Premier BRAND, meanwhile. has told
the foreign affairs committee of the
French Senate that an agreement in
principle has been worked out by the
American Secretary and Ambassador
Berenger, and that a definite agree
ment soon will be signed.
Commercial and political debts are
to be merged under the plan, the COM
mittee was informed, and annual pay
ments are to be made over a 62-year
;NL t1n, NJ NJ
graduating up to 100000, 900. Provi-
sion would be made for revision in the
future, but the Safeguard clause"
dealing with Frances ability to pay in
case of default by Germany on repa-
ration payments to her. would be
abandoned.
Evokes Strong Protest.
This clause was insisted upon by
the French in former negotiations, but
was objected to by the American COM
miSsionerS because of their unwilling
| ness to complicate funding arrange
ments by conditioning payments by
one nation upon any action by an
other. Evidence that some French
senators have not changed their minds
about it was disclosed in vehement
| protests which followed the premier's
,
| committee.
Despite the Senate's vote on the
Italian agreement, the prospect of
| lengthy discussion before final action
can be taken confronted the Senate
today. Senator Reed, Democrat, Mis-
souri,, vigorous opponent of the settle
ment, voted in the Affirmative on its
ratification to pave the way for mo-
| tion to reconsider.
He took similar action with respect
to an amendment offered by Senator
Howell, Republican, Nebraska, another
opponent of the plan, who has con-
| tended that In effect 1t cancels the
D., principal of the debt and obligates
| Italy to pay only part of the interest
/ he believes should be collected.
| This amendment would require an
agreement from Italy to issue bonds
equal to the amount of the debt, which
would be payable annually in the
amount it has agreed to pay each year
| to the United States on account or IN
terest and principal. BY voting against
this amendment Senator Reed placed
himself in a position to move its re-
consideration as the chief talking
point of the renewed fight against the
| settlement.
The roll call on the Italian settle
ment follows:
For ratification:
Republicans - Bingham, Butler,
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