M. Caillaux arrived last Sunday night, and the con- versations
began on Monday morning. It will be remem- bered that some weeks ago French experts visited London and offered such a small proportion of the £20,000,000 a year asked for by the British Government that the Treasury felt bound to reject the offer. The experts re- turned to Paris, and it was hoped that M. Caillaux on this occasion would make a much more substantial offer. To be frank, we had the right, to expect this, especially as in the interval the British Government had reduced their figure from £20,000,000 a year to £16,000,000. The con- versations, begun on Monday, were continued on Tuesday and Wednesday. On Wednesday afternoon the Cabinet was unexpectedly summoned, though the Prime Minister was absent, and after it had met twice Mr. Churchill made an extremely impbrtant announcement. The £16,000,000 annuity demanded three weeks ago had been reduced to £12,500,000, and M. Caillaux, though he had been unable to offer more than £10,000,000, would lay the proposals before the French Cabinet. Mr. Churchill added that M. Caillaux had already made a noteworthy advance on all previous French offers. That is true, though we still do not pretend to admire French ideas of how to pay debts.
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