CLEARING OFF INTERNATIONAL COMMERCIAL DEBTS.

FRANCE; ITALY; SWITZERLAND

The article analyzes how European governments, France in particular, have used international clearing agreements to settle international commercial debts. The nature of the agreements are examined, as well as the specific circumstances which they were arrived upon. The importance, results and criticisms of France's debt clearing operations are discussed and comparisons are made to other countries that have instituted similar clearing systems, such as Italy and Switzerland. The implications of such clearing systems for the credit status of other countries and governments are also presented.