Show fRENCH ENVOYS D SUE OFFER FIRST PROPOSAL IS REJECTED BY DEBT DEOT COMMISSION AS UNSATISFACTORY United States State Said To Demand High High- of er r R Rate t of Interest And Larger Payments Payment Than Those Thole Offered Offered Offer Otter ed By Dy Fra France ce Washington The washington The American counterproposal counterproposal counter proposal for funding the French debt has las been laid before the French debt Commission and amid rr from m indications it was very disappointing to the French After consulting President Coolidge Cool Cool- idge at the cabinet meeting and then with his debt commission colleagues in ina In Ina a private meeting Secretary Secretory of the Treasury Mellon laid the proposal before before be be- fore Finance Minister Caillaux In a brief session The French mission headed by Caillaux spent only thirteen minutes with the tho American commissioners being dismissed as soon aa as th the th counter offer had been read and then handed to them As the rench delegates mm vu oue of the room disappointment was plainly written on their fac faces They seemed downcast at what appeared to be flat fiat rejection of theIr first terms and the stiff agreement nt proposed proposed pro pro- posed by the Americans The American commission continued continued con con- tinned in session for a short while white after the French left Undersecretary of the Treasury Winston said sold after the French left that the negotiations were proceeding proceed proceed- ing lag In the usual manner of the offer and counter offer II lie ne added however that there was no sign of a break up of the negotiations negotiations I and that as a consequence I all continued harmonious No official Version of the he experts estimated that the Americans would demand at least a year I after an initial period of reduced payments pay ments and furthermore informed the French th that t the period of reduced 1 payments which tho the French proposed was completely out of harmony with American ideas on the subject The French offer contemplated In International in in- payments payments' of not more snore than at the highest but an initial period of twelve years reduced payments ranging from to A flexible ble provision also was Included stipulating that France should have the right to seek revision of the debt settlement terms of condition conditions should adversely ad affect her future capacity to pay The Caillaux proposal submitted at the first session of ot the two commissions commis commis- Is regarded by some I members of ot the commission as unsatisfactory ory but Secretary of ot th the Treasury Mellon is having it carefully studied by experts ex experts In connection with voluminous data bearing on the French capacity to pay Outside of at the congressional group on the debt body there Is no tion to feel that the negotiations have come to an impasse at the outset and it may be said sold that this group Is ha ha- pessimistic In the debt negotiations negotiations having predicted the collapse of ot the Belgian negotiations a few tew hours before the Belgian agreement was signed The negotiations have entered the Jockeying stage without loss of ot time |