800.51 W 89France/404: Telegram
The Chargé in France ( Whitehouse ) to the Secretary of State
[Received 2:25 p.m.]
379. I am setting forth as follows the situation with respect to our debt agreement at the present time, as I see it: Although he is convinced that the debt question must be settled, Poincaré has not yet reached the point where he will jam the Mellon-Bérenger agreement through, as it is, without reserves. For this there are several reasons.
[Page 107]- (1)
- Opposition to ratification in Parliament is not only real but is of considerable velocity. In the Cabinet it is represented particularly by Marin.29
- (2)
- The present financial situation of his government is pleasing to Poincaré and he is also quite pleased with himself. Therefore, he does not feel that there is any vital necessity for haste from this angle.
- (3)
- The prevailing opinion appears to be that, due to the fact that public sentiment in the United States is gradually becoming favorable to a modification of the debt agreements, delay is advantageous to France. Likewise, for some reason it is thought that the Democratic party would show more generosity. Therefore, there is a desire to know the result of our November elections.
- (4)
- The situation has been complicated by various American bankers who have offered to make available large amounts of money after ratification of the debt agreement. Since these offers have been somewhat numerous, Poincaré has conceived the idea that the financiers’ insistence on the need of ratification is due to the plethora of money in the United States, with the result that foreign loans must be made at all costs, and is not due to sincere belief that it is necessary to France’s financial salvation.
- (5)
- Poincaré is not yet ready to stabilize the franc. He is dallying with the idea of the German railroad bonds not only as a means of keeping out of the hands of the Anglo-Saxon financiers, whom he dislikes, but also as being in line with his doctrine that France can save herself.
However, Poincaré is preparing for ratification with reservations in some form during November and it is my opinion that everything will depend upon the form adopted.
During Francqui’s30 visit last week, I have been told, Poincaré read to him a draft preamble, and when he asked for Francqui’s opinion, the latter stated that to him it seemed very complicated and not easy to understand.