Evening star., 1927-10-11
LOAN CONCESSION
FORFRANCE SEEN
Paris Held Dropping Tariff
Fight for Washington
Fiscal Favor.
by DAVID LAWRENCE.

Reciprocity has taken on a new
meaning in relations between France
and the United States. The French
government wanted tariff concessions.
The American Government was un'
able to make any changes in existing
schedules, but, yielding to bargain
ing spirit, introduced by the French,
| the Washington administration VIII
remove certain barriers to the dota-
ton Of French loans.
The French are endeavoring to re-
| finance one of their loans fioated by
private bankers in the high.interest
era of postwar years. Originally the
word went out that the American
Government would have no objection
to such a step, because 1t represented
no new advance OF money. Then Sen.
ator Borah chairman of the foreign
relations committee, began to object
and the State Department grew eau.
tious.
Big Principle Involved.
There is reason to believe that Sen.
tor Borah has been won over to the
idea that the refinancing of a loan
will not prejudice the position of the
United States in case it desires later
on to disapprove of new loans that
the French may want. In other words,
the granting of permission to float the
reflnancing loan is a small matter
alongside the big principle involved in
the tariff dispute. The French are
asking for reciprocity and the United
states Is giving it, not in reductions of
tariit, but in relenting somewhat on
its loan policy.
1t is considered possible that the
nrNSAnf faPfff
been begun simply as a means of get.
ting concessions on the financial issues
between France and the United States.
me French have not ratified the Mel.
lon-Barenger agreement, but they are
planning to pay the United States.
nevertheless, the sums called for an.
nualiy for the next live or ten years.
Debt Revision Upward.
IT is recognized also that France
Inust sooner or later get rid Of the ban
wnlcn Ine United States Government
mas placed on the floating Of new
French loans. The restriction d more
uncomfortable from the French view.
point than the tariff policy of the
Onlted states. The Washington Gov.
ernment has no objection really to the
noatlng or new loans IL 1t could get
some assurance from the French CON
cernlng their intentions with respect
TO the war debts.
~ IS not necessary for the Mellon
agreement to be ratified this year. as.
no specified time limit was placed in
tne document, but as the French finan-
sx c.aI position improves the American
congress may desire a revision 1Ir,wa I'd
some day on the ground that the
french capacity to pay is better thar
u was when the agreement was made
congress has the power to order q
IoVlstoh OF the agreement, inasmucf
finally. 1poi
Feeling Out Temper.
The amounts involved in tha +ar;rp
dispute are so small that officials are
convinced the French were feeling ouf
tne temper of the United States Gov.
eFnment with a view to further dis
cIlminat1on If America did not object
vigorously. The exchange of notes
SHOWS that the United States is not
gong to allow her exporters TO be.
come the victims of trade discrimina.
uon. and that France cannot afford to
sacrlnce the goodwill she has built up
Win the American Government by
! introducing certain tariff changes
winch are contrary to the spirit which
mas prevailed heretofore.
The American Government has
adopted a conciliatory tone through.
OUT the correspondence, believing that
world opinion will not support any
nauonalistic policy that involved un.
equal or discriminatory treatment for
another country. While the Ameri.
can tariff wall is high, the duties are
collected equally from all countries
which send their exports here. The
French tariff is in the nature of a
penalty directed at the United States
alone. and the American Government
10 confident that the French will
ultimately drop the matter. especially
II they can show their own people
that the United States gave certain
concessions in the matter of certain
! loans.
fCopyright. 1927