Evening star., 1926-10-06
DEBT RESERVATION
COMPROMISE SEEN
Poincare Proposes Plan to
Voice Opinion Without
Changing U. S. Pact.

By the Associated Press.
PARIS, October 6.--Another version
of contemplated French reservations
to the debt agreement with the United
States appeared today.
Yesterday it was reported that Pre-.
mier Poincare would propose approval
of the Berenger-M Mellon settlement
with such oral reservations as Parlia.
ment might desire to make.
Today Excelsior says that Poincare
Is understood to have told NJ. Simon
president of the finance committee of
the Chamber of Deputies that the
Washington Government would be
disposed to take into account reserva.
tions dealing with the question of safe
guard and transfer If expressed in a
letter
Such a letter would be similar to
that which accompanied the signature
OF the Anglo French debt agreement
by Chancellor of the Exchequer
Churchill and Finance Minister Gail
laiuX in London.
Would Not Modify Pact.
Such reservations. the paper said.
would he embodied In a preamble to
the ratification of the debt bill, thus
permitting the Chamber Of Deputies
to put on record its views without
modifying the text of the debt agree
ment.
While Premier Poincare is now con
vtnced that the way of France s f1nan-
cial salvation lies only through ratifi-
cation of her debt agreement, says
Excelsior. many deputies do not share
his conviction and only by permitting
them TO voice reservations can he sue,
ceed in forcing ratificat ton before the
end Of the year. as Is his desire.
NJ. Poincare is confident Of obtain
ing a satisfactory vote after this plan
and appears to have won over NJ.
Simon. The latter told Echo de Paris
that, while such procedure had never
been employed in France, It had been
used in America. The reservations. or
expressions Of reserve, he remarked,
could cake the form Of phrase in
serted in the preamble. such as "con-
sidafing that this agreement can only
be validly applied If accompanied by
transfer and safeguard clauses.
Would Protect Exchange.
The transfer clause would have pro-
yided that France should not endan-
ger her exchange in order to pay any
yearly installment on her debt to the
United States.
The safeguard clause would have
provided for the protection OF france
in her payments to the United States
should Germany fail to meet her repa.
ration obligations. Neither of these
contingencies was accepted.
Flotation Of German railroad. indus
trial and reparationS bonds in the
United States has become a. settled
policv of the principal continental
allied countries entitled to repara-
tionS.
The French government. which
formerly was adverse to the scheme
because of the large sacrifices 1t would
be obliged to make in order to render
the securities attractive to. Amer;
ican investors. now is earnestly IN
favor of the scheme, because OF the
ready cash in dollars the hota ton
Of the bonds would make avallabie
for use in Premier Poincare's stabil'
iZation plans.
France. Italy and Belgium. who
have been especially interested in the
project, have had the matter up al
Washington. II was authOr1tauVely
learned vest terday. They seek 70 per
s11ade the American Government 10
allow American banks TO interest
themselves in the project. 1t is under
stood the French used the argument
that floating these bonds Will make
q easier for France to stabilize the
franc and hence make the, payment
Of war debts less burdensome.