Evening star., 1928-10-22
MONEY OWED j. S.
WILL NOT Be TOPIC
Of DEBT PARLEY
Poincare and Churchill Agree
on Program of Repara-
tionS Discussions.
NOT TO MENTION CAPITAL
SUM IN GERMAN REVISION
French Will Not Ask America to
Reduce Obligation-Terms Of
Submission Chief Work.
BY the Associated Press.

By the Associated Press.
PARIS, October 22-Prenier Poincare
and Winston Churchill, British chan
cellor of the exchequer, it was learned
authoritatively today, have agreed that
in the coming discussions of reparations
that the question of French and other
European debts owed to the United
States shall not be discussed.
They also are agreed that the best
course in preparing for a revision of
German reparationS payments is to
mention no capital sums nor terms of
years within which the payments shall
be made.
Coincide on Views.
In regard to sums and terms OF years,
Hermann Mueller and Gustav StreSe-
mann, respectively chancellor and for
eign minister Of Germany, hold views
identical to those of M. Poincare. They
believe it is useless to talk about how
much Germany can pay and when, thus
confusing and embarrassing the special
committee to which revision will be
referred
The allied governments concerned
are themselves not quite sure as to what
sums they can expect and the German
government has not formulated any
proposals The only preoccupation OF
the governments at present is to form
a committee to draw up general terms
of reference.
Concerning debts, Premier Poincare IS
described as having said most positively
that as far as the French government
is concerned there is no intention of
asking the United States to reduce the
debt by SOU His position is that
France has already acknowledged the
debt, was paying installmentS on 1t
under the Mellon-Berenger settlement
and will not question the obligation.
Several Arrangements Likely.
In the background of plans for
reparations' revision is the probability
that the German governments sched-
uled payments will carry with them the
stipulation that Germany may discount
the sums due many years hence by
bonds or other arrangements This
same idea also embraces the possibility
of the United States and England being
willing to discount payments due 80 or
go years from now by taking In pay
ment German bonds guaranteed by
France, Great Britain, Italy and Bel
GUM as well as Germany. This would
be similar to debtor to whom money
was owed passing over promissory notes
with his own Endorsement and thus
increasing the guarantee by two sigma
lures instead of one.
French Action Held Essential
The belief prevailed today that unless
France should ratify the Mellon -Berlen-
ger agreement on the French debt to
the United States American aid would
be refused in floating German bonds,
which fould be necessary under the
proposed commercialiZation of the
Dawes plan.
In circles close to the government it
was thought that Premier Poincare
would request Parliament to ratify the
agreement made between the United
State and France in 1926, which fixed
the funded debt at $4,025 100000. This
policy was understood to have been
agreed upon last week at conferences
between Winston Churchill, British
chancellor of the exchequer; NJ. Poin-
care and S. Parker Gilbert, ir, agent
general for reparations. 1t was as
sunled that the ratification of the Call
laux-C Churchill agreement. covering the
French debt Of about $3,265.639.5 500 to
Great Britain, would also be asked of
Parliament.
Regular With Payments.
Since France is now meeting war
debt payments to both America and
Great Britain with perfect regularity 1t
was pointed out in governmental and
financial circles that ratification of the
agreements was only logical step.
Government supporters also adj
vanced as an additional argument In
favor of ratification of the Mellon
Berenger accord the fact that France
must pay $4oo, 100000 next August for
American Army stocks left after the
World War This debt now bears per
cent interest and if the agreement is
ratified 1t viii be consolidated in the
general war debt and the interest rate
reduced to 2 per cent.