Evening star., 1926-06-11
France May Reject Debt Pact
BY FRANK II. !SI.NONDS.

Within the last few days several in
tercsting reports have come TO me
from Paris foreshadowing the even
tual defeat of the Mellon Berenser
debt settlement. While it is obviously
too early to forecast such an action
by the French Parliament. it is at
least fair to say that these reports
are quite in line with all / could gather
when l was in France in the early
Spring.
AT the outset one must recognize
that the settlement, any settlement
which undertook TO collect large sums
from the French, would seem TO all
Frenchmen, without regard TO class or
political affiliation, as entirely unfair
and immoral The very simple but
universal formula is that France, hav-
ing borne the brunt of the battle, hav-
ing lost 100000 soldiers and having
had 10 departments ravaged, not only
cannot justly be asked to pay, but ac-
tually is the creditor, not the debtor,
of her allies and associates.
If there were no question save that
of the real or alleged obligation in
volved in the debt transaction there
would not be a single chance on earth
for any debt settlement, whether that
of Berenger. that of Caillaux or any
other negotiator. From the French
point of view, any debt settlement is
merely to be explained as transac-
tion made necessary because the finan-
cial position of the United States is
such that American loans are essen
tial to the Stabilization of French cur
rency.
If the debt settlement is finally rati-
fed by the French it will be simply
because the nation believes it must
have new money, and that to get new
money 1t must comply with American
terms. At the present hour. however,
the nation, as contrasted with certain
French banking and business people,
not only does not believe that foreign
money is needed, but is inclined to re-
gard new loans as a source of grave
danger-in a word, as likely to place
limit on the actual freedom of
France.
From the French point of view, the
American Government and people are
undertaking to dominate the world by
means of their wealth. You have in
the French mind real similarity in
result between German effort to domi
nate the world by steel and that of
the United States by gold. There is
a profound fear lest once France had
accepted new loans we should then un.
dertake to regulate French affairs, and
particularly to restrict the means of
defense of the country.
But the immediate obstacle to the
ratification of the settlement which
has been made Professionally lies in
the present state Of French politics.
There Is, of course, no such thing as
zS.Arr
French chamber is divided into a
dozen or more groups, of which at
least six are considerable. BRAND,
who is premier, took office backed by
the more or less definite combination
of parties Of the Left, that is of the
radicals.
He has had, however, to govern in
practice now by getting votes from
the Right, now from the Left; that is,
alternately from the conservatives
and the radicals. He has fought the
Moroccan war with conservative sup
port and he has carried through Lo-
carno by the aid of the radicals. His
latest test, over a commission to con-
slider the French financial situation.
gave him a majority through votes
almost entirely derived from the
Right.
In this confused and changing situ-
alton, however, there is not a party
Sr group which wants to assume re-
sponsibility for saddling France with
a huge obligation covering two gen.
erations. The mass of the French
people regard the settlement as no
more than blood money; they are.
moreover, traditionally suspicious of
foreign influences and see the whole