Obligations

A speech made in the U. S. Senate by Senator Borah, referring to the nonpayment by France of her War debt, elicited the following comment from Paris: "Senator Borah declares the French Government intends to repudiate its debt. M. Poincare has declared since the inception of his ministry that France repudiates none of her obligations and he has repeated this many times. On Nov. 16 he said: 'It seems I must repeat it once more--we do not seek to repudiate our debts, but our debts certainly have origins which are not in any way compatible with those of Germany's debt.' Never has there been official word from France to the contrary. What is really strange in Senator Borah's declaration is that it is produced at the very moment when France is bleeding herself white with a 20% new taxation. And this to pay reparation debts which, from proposals formulated by America herself, should have been paid by Germany. When France is giving the warmest reception to the American financial experts conducting the examination here it is scarcely the time to impugn France's good intentions in an extreme manner." Le Temps said: "It seems to us that France ought to take the initiative in new negotiations on the War debts. She could begin, as did England, by approaching the United States. First the exact total of the American claim on France should be fixed, which would be a matter of bookkeeping. Then could be discussed bases of settlement. Effective payments would evidently depend in some measure on the resources France could get progressively from the collection of her claim on Germany. "To be sure, all that could not be done in a few words or in the open street. But discussion of the matter is inevitable and France would gain by beginning it, whereas she can only lose by avoiding it. An arrangement with the United States would give useful points for fixing future payments by Germany. If it were well made with sufficient elasticity it would help stabilize French exchange. In addition, it would perhaps, in response to those who represent France as the enemy of British prestige, furnish a basis for future agreement between the French and English."

Other sources indicated that strong pressure was being brought to bear on Premier Poincare to get him to reopen the entire question of a debt agreement with the U. S.

A bill was introduced into the Chamber of Deputies by the Government which calls for the ratification of the agreement signed in Paris on May 25, wherein it was agreed to pay the cost of the U. S. Army of Occupation.