President Coolidge Opposes Cancellation of Foreign Debts

He does, however, allow them to be adjusted to the financial capacity of each country. Washington, Dec. 3 (Dept. Petit Par.)

In his message to Congress, President Coolidge recommends the reduction of taxes to facilitate industry, advocates measures in favor of agriculture, and the rapid payment of compensation to French individuals for damages caused by the American army during the war.

He speaks out against increasing the strength of the army and navy and against the League of Nations. With regard to disarmament, he considers that it is advisable to wait some time before calling a conference.
Coming to the question of foreign debts, he declares:
About twelve billion dollars are owed to our government, almost entirely by European governments. Great Britain, Finland, Hungary, Lithuania, and Poland have concluded arrangements which represent nearly five billion, that is to say, 42% of the liquid debt. These arrangements have been concluded since the organization of the Debt Commission. As the existence of this Commission is coming to an end, it is important to prolong it.
I am opposed to any remission of these debts and I believe that it is in the best interests of the whole world that these debts should be liquidated and paid as quickly as possible.
Moreover, there is here a moral obligation which our country cannot ignore and from which other countries cannot escape. The terms and conditions may be modified according to the state of the finances of the countries concerned, but the principle that every country must meet its obligations admits of no exception and remains a universal principle.

Pierre Marsac

THE MELLON-JUSSERAND CONVERSATIONS

Le Petit Parisien has announced that talks are currently taking place in Washington between Mr. Jusserand, the French ambassador, and Mr. Mellon, the American Secretary of the Treasury, who are examining the conditions of a possible agreement concerning the settlement of the French debt to the United States. It should be noted, however, that these are not official negotiations, but merely preliminary conversations.