800.51 W 89France/46: Telegram
The Ambassador in France ( Herrick ) to the Secretary of State
[Received December 30—6:55 p.m.]
614. My 550, December 8, 6 p.m. Although Herriot is still indisposed I saw him at his home today and he handed me note regarding the state of French public opinion relative to the French debt to the United States which Clémentel had drawn up. The note suggests a complete moratorium for 10 years, no interest for the following 10 years, and one-half percent interest after that until end of amortization 90 years after first payment.
These terms appear so unacceptable to American public opinion that I shall not cable text of note but shall forward it by pouch unless otherwise instructed by Department. Although note seems inadequate even as basis for negotiation, I shall, however, confer with Herriot and Clémentel as they originally suggested, unless Department instructs otherwise, and shall endeavor to persuade them to make more favorable proposal.
Herriot showed me copy of a cable he had sent to Ambassador Jusserand directing him to point out to you that Clémenters inventory [Page 134] regarding the financial situation in France affirmed responsibility of France for her debts in three different places. In view of fact that the editor of the Paris edition of the Herald told me that he had inadvertently omitted mention of these three statements referred to, you might think it advisable to give some publicity to Jusserand’s explanation.