Evening star., 1927-10-09
REFUND|NG LINKED
WITH TARIFF NOTE
U. S. Not to Oppose Lower
Interest on $10O,000,O 900
Loan to France.
By the Associated Press.

By the Associated Press.
Coincident with the completion of
the American reply TO the last French
tration is giving renewed consideration
to Frances desire to refund at an
early date the 00.000.G00 private
loan it has outstanding in this country.
While the tariff issue and the re-
funding project are wholly unrelated,
there is a feeling among some high
officers that definite as
surances to France of favorable at.
titude toward the financial transac.
ton could not but improve materially
existing Franco-American relations.
The French refunding proposal was
based upon a material improvement in
the French financial situation, held
by both French officials and American
bankers to entitle France to an in
terest rate on the one-hundred-million
dollar-loan of considerably less than
the s per cent at which it was f1oated.
f1oated.
Some Objection Voiced.
Objection to the proposed refunding
vas voiced in some quarters, both IN
and out of Congress, and, although
there was informal approval OF the
plan at the State Department, the mat
ter has been dormant for some weeks.
Recently, however, it has been revived,
presumably through the French en-
basSy here.
Naturally there will be no reference
in the American tariff note to the re-
funding matter. 1t would cause no
surprise, however, if when the Amerl'
can note is delivered to the French
foreign Office tomorrow or Tuesday,
steps were taken to assure the French
Government that the financial pro-
gram would meet with no opposition
at the State Department.
The tariff note itself will be brief
and conciliatory in tone and will ac-
cept the French suggestions for re-
view by the American Tariff Commits
sion of duties on French export prod
ucts which come into competition with
similar American. commodities on the
American market.
Want Minimum Duties.
Also it will assure France of the
Willingness of the Washington Gov
ernment to study anew the application
of sanitary statutes and regulations
which France has found irksome, par
ticularly as to American plant quaran-
tines. However, the emphasis in the
American communication will be laid
upon a renewed request for a restora-
ton by France of minimum French
tariff duties on American goods pend
ing the conclusion of commercial
tyr tt.,ti yl,i4 i4I, q
contemplates
While the Washington Government
has been pressing France for the in
clusion in that treaty of a specific
INSTRUMENTATION clause, an au-
thoritative statement at the State De-
partment indicates that it would now
he satisfied with language substan.
TALLY similar to that employed in the
new Franco German commercial
treaty. In that document the most
favorednation clause is omitted, pre-
sumably in Difference to French
policy, although it is the view in
Washington that the pact arrives at
the same result in fact.
In line with the forthcoming Ameri.
can note. the Tariff Commission
already has undertaken a broad sur.
vcy of French imports and produc-
tlon costs In comparison with COM
petinS American commodities. While
the American Government cannot
pledge reduction of statutory
duties in advance of the finding OF
tine commission. the President has the
power to reduce existing rates as much
as so per cent, should the commits
sion's survey sustain the contention
made in the last French note that
American rates were based on "er
roneous data"