800.51 W 89France/121: Telegram
The Ambassador in France (Herrick) to the Secretary of State
[Received 1:15 p.m.]
282. Department’s 190, May 8, 4 p.m. With reference to your paragraph 3 I do not think Franklin-Bouillon desired United States to commit itself to basis upon which France and Great Britain might agree. His principle is that as French debts to Great Britain and to the United States are approximately equal it is impossible for France to discriminate in favor of one against the other. Practical result is that French Treasury must be prepared to pay double what may be agreed upon with the United States, and that this fact has naturally to be considered in estimating amount France could pay us.
Your paragraph 4. I have never failed to be aware that negotiation of terms is wholly matter for Debt Commission and I think the French understand that perfectly. During a conversation with Franklin-Bouillon this morning I put forward your suggestion in regard to Ambassador Daeschner and Secretary Mellon.
Caillaux and Minister for Foreign Affairs Briand have been officially appointed to study question of the interallied debts, and I have slight doubt that an official proposal will be forthcoming in comparatively near future.
Repeated to American Embassy, London.