Great article from WSJ yesterday.

REVIEW & OUTLOOK

Deadbeat France

Not only has Old Europe refused to ante up for Iraq's reconstruction, France and Germany in particular have been resisting calls for a radical write-off of the country's crushing debts. The two countries were major financial backers of Saddam's war machine. While lenient repayment terms may be considered, they have suggested, they're intent on getting the bulk of their money back.

Well, if the French are going to be sticklers, we think it's time they be reminded of their outstanding debt to the United States. No, we're not talking about the hundreds of thousands of American soldiers who gave their lives in two world wars so that France might be free. We're talking about a monetary debt -- one that hasn't been serviced since Herbert Hoover was President.

During and after World War I, the U.S. extended a substantial amount of credit to its European allies. In 1922, the U.S. and 15 European countries agreed on a total indebtedness of about $11.5 billion -- slightly more than $4 billion for France. Payments were made until 1931, mostly from German war reparations. Then the Depression led Hoover to declare a one-year moratorium, and by 1934 all but two of the countries defaulted. As of last December, according to the U.S. Treasury, principal and interest due on the French debt amounted to about $11.8 billion, or about twice what France may be owed by Iraq.

If France is going to make America's mission in Iraq more difficult by insisting on Saddam's debt, maybe we should insist on France finally repaying us.

Updated November 4, 2003