RUMANIA'S DEBTS.

Auckland Star, Volume LXVI, Issue 35, 11 February 1935, Page 7

RUMANIA'S DEBTS.

PAYMENTS TO BRITAIN. (British Official Wireless.) , (Received 9.30 a.m.) RUGBY, February 10. In the House of "Commons on Friday the President of the Board of Trade, Mr. Walter Runciman, announced ■ that an agreement on Rumania's trade (debts to Britain had been signed. Conversations on this subject recently were conducted in London with the Rumanian Minister of Commerce, M. Strunga. Mr. Runciman said the trade .debts of Rumania outstanding from November 1 totalled £2,500,000. It was proposed to liquidate those debts as follows:— (1) The Rumanian Government undertakes to pay into the special account at the Bank of England a sum of £iOO.OOO to be used without delay for the payment in full of all trade debts not exceeding £20, and the payment of £20, or 20 per cent, whichever is the greater, as the first instalment of debts above £20. (2) On the 15th of each month, beginning in April, £00,000 will be paid into the account. This is a basic figure, but is subject to variations upward or downward in proportion to any substantial increase or decrease in Rumanian exports to the United Kingdom. (3) Facilities will be granted under certain conditions for the payment of the debts by means of so-called compensation exports- in so far as creditors desire to avail themselves of that procedure. The agreement requires ratification by the Rumanian Government and subject to this it wiU come into force on February 25.