Evening star., 1926-04-30

0ontinned from First Page)
are expected to take exception to the
absence of a "sa feguard clause" This
has been one Of the points on which
previous negotiations have broken.
the French insisting upon provision
TO relieve them of payments IL Ger
many should default in reparat tions
remittances and the Americans re-
fusing to accept a plan making the
effectiveness of an agreement depend
ent upon conditions in a third country.
Agreement was not reached until
late yesterday. when Amba ssador
Berenger presented a revised pro.
posal to the American commission.
which had suggested an increase in
The $26 ,00O. 900 initial payments he had
offered. to Oring them closer to the
$40 1000 600 figure advanced by the
Caiilaux mission. After an hour $
discussion the plan was laid before
President Coolidge. and shortly after
ward the Secretary and the Ambas-
sadOr signed the agreement.
Exceeds Caiiiaux Plan.
Compared with the highest offer
made by 1CaillauX it provides for
smaller payments during the first five
years-totaline $160OO0, 900 against
$500 .000. .O00-but 1t calls for $500 ,000,-
600 more altogether and expires six
years earlier.
Secretary Mellon issued state
ment explaining the terms and eX
pressing the commissions belief thar
this settlement represents substan'
tially France ca apacity to pay
Unless Franc is enabled prompt
~ to fix the amount of its obllga
tiOnS abroad so that II may know
definitely It's commitments and may
provide for them in it's budget" the
statement decla red. there might be
grave danger of complete break
down of French finances. This would
he serious blow to the re-establish
ment of Europe and would inevitably
affect not only the payments now he
ing made to the United States by
Fra nee but would seriously curtail
the sale by our farmers of our ex-
port surplus abroad"
After the session, Amba SSa dor
Berenger read a statement to report
ers in which he thanked members
of the commission and Chairman
Mellon for their spirit of under
standing"
Holds Settlement Vital.
you do not expect me to contend"
ne said. that there is no greater
satisfaction for debtor than to re.
pay it's creditor even such creditor
as the United States OF America. But
France has for too many years
proved that any obligation bearing
it's signature was sacred not 10 re-
main faithful 10 such a, principle not
withstanding the crushing burden
which the war put on her and which
she is TO bear for many years"
He declared the settlement lis, not
only necessary for the restoration Of
France and the re-establishment Of
the economic equilibrium OF the
world. but IL suppresses a source of
friction and misunderstanding be-
tween our two countries.
France Will not regret these new
sacrifices il the present settlement Is
going to strengthen the friendship
between France and America and
contributes TO reinforcing peace
throughout the world"
The full text of the statement from
Secretary Mellon, explaining the set
tlement, follows:
THE American Commission has
reached an agreement with Amba ssa
dor Berenger for a settlement of the
Indebtedness of France TO the United
States. The amount to be funded has
been calculated on the same basis az
in other debt settlements. at AZ per
cent interest to December IS. 1922.
and at per cent interest thereafter
to June Is. 1925. the date of the agree
ment. The total TO be funded after the