WAR DEBTS.

Auckland Star, Volume LXI, Issue 227, 25 September 1930, Page 7

WAR DEBTS.

FRENCH REDEMPTION.

Large Scale Finance Operation

Foreshadowed.

BEITISH CLAIM FOR GOLD.

(United P.iu—Electric Telegraph.—Copyright)

(Received 1 pjn.)

PAEIS, September 24

It is learned from official. sources that the French Government contemplates a large scale financial operation as soon as conditions are favourable. It h believed it may comprise redemption of part or the wjiole of the 1915 5 per cent rentes (Government stock).

It has belatedly leaked out that in this connection the Government in July received a Note from Mr. Philip Snowden, British Chancellor, backing claims of British holders of rentes issued during the war amounting to 1,641,000,000 francs, that they should be paid on the gold basis instead of with stabilised paper francs, which are worth 2d, compared with 10d before the war.

It is recalled that France unyieldingly insisted on her borrowers repaying on the gold basis, yet she refused the same right to British holders.

Ih is admitted on behalf of the British holders of rentes that they have no legal claim, but it is urged that the. strong moral claim is accentuated by the reflection that had Britain insisted on fall payments of the French war debt France would not now be the largest gold holding country in Europe with no unemployment, while Britain WjOuld not be under such a staggering income tax and would not have such a huge number of unemployed.