800.51 W 89France/113: Telegram
The Secretary of State to the Ambassador in France ( Herrick )
190. (1) I have discussed your No. 268, May 7, 2 p.m., with President Coolidge, Secretary Mellon, and Secretary Hoover.
(2) We thoroughly agree with your view that suggestion regarding difference in rates of exchange cannot be taken into consideration, and we are gratified that you have dispelled any idea that a trading basis on that point is possible.
(3) The basic principles put forward by M. Franklin-Bouillon are not acceptable. It should be recognized that this Government can make no commitment of any kind to agree to a basis which might be agreed upon between Great Britain, and France, and that we must insist that debt of France to the United States is entirely separate. His suggestions with regard to a moratorium and period over which payments are to be made are covered in statement Secretary Mellon gave to Jusserand on December 1, 1924, of which you handed him a copy.
(4) It is gratifying to note indication that official proposition may soon be made, but I am confident that you will appreciate importance of bearing in mind fact that actual negotiation of terms is matter for World War Foreign Debt Commission, and that neither the Department nor its representatives are authorized to negotiate. [Page 154] Any indication on your part of views of Debt Commission besides those set forth in Secretary Mellon’s statement to Jusserand of December 1 might, at present stage, lead French officials to endeavor to draw you into discussion of particular terms. It is our desire to elicit from French Government an official proposal to Debt Commission on basis of Secretary Mellon’s statement (copy of which you handed to M. Franklin-Bouillon) in which sole area for discussion is adjustment of interest payments to economic necessities of France. A proposition of this nature might be presented to Secretary Mellon by Ambassador Daeschner and in this way serve as basis for further discussion with Debt Commission.