29 AUGUST 1925, Page 1

There was, however, a discrepancy between Mr. Churchill's statement and

a statement made by M. Caillaux. M. Caillaux spoke of a moratorium promised by the British Government for five years. Mr. Churchill had said nothing about this. Mr. Churchill, however, did not omit to mention the familiar and essential prin- ciple that any payments made by France to America must be accompanied by proportionate payments to us. As though to signalize the triangular nature of the whole transaction the American Ambassador had several conversations with British Ministers on Tuesday and Wednesday. By design or coincidence the American President announced on Tuesday that the indulgence with which Belgium had been treated was not to be regarded as a precedent. The American principle, in fact, was that each debtor nation must be treated according to its " capacity to pay." But suppose that we let France off as easily as she proposes, that would increase her paying capacity in the eyes of America. In other words the more we let France off the more America would expect her to pay to Washington. America would get what we lost. That must be prevented. * *