800.51W89 France/992

Memorandum by the Under Secretary of State (Phillips)

The French Ambassador expressed the view that, as Barthou was to return to Paris from Geneva on Friday for a Cabinet Meeting on Saturday, Undoubtedly the position of the French Government with respect to debt payments would be taken on that date; he said that the British note28 declining to make any payment on account made it far more difficult for the French Government to make payment; the relations between Paris and London had to be carefully considered and with the popular attitude in France similar to that in England, it would be exceedingly difficult for the Government to adopt a different course from that adopted by the British Government; the Ambassador said that he hoped that his Government, even if it could make no part payment now, would express the hope of early negotiations for a final [Page 569] settlement and, on the opening of such negotiations and as an earnest of France’s sincerity, that the Government would make a substantial payment. This is the course he said he would recommend to Paris.

William Phillips
  1. Dated June 4, 1934; for text, see Department of State, Press Releases, June 9, 1934, p. 355.