GERMANY'S DEBTS.

Press, Volume LXIV, Issue 19199, 4 January 1928, Page 7

GERMANY'S DEBTS.

NEW AMERICAN SCHEME.

(BY CABLE—PRBSB ASSOCIATION— COPVBIOHT.) (AUSTRALIAN AND K.Z CABLB ASSOCIATION.)

BERLIN, 'January 2. The "Deutsche Bergweiks Zeitung" says that a new scheme for German reparations and war debts settlement has been drafted by American bankers to replace the Dawes Plan. It is believed that the crux of the scheme is an international bank consortium, in -which the Governments will participate, and which will,. float a £1,200,000,000 loan, of which £850,000,000 will be paid to the United States in settlement of all Allied debts, after which presumably Britain will abandon her claims against France, Belgium, Poland, and Italy, while America will cancel £1,550,000,000. The remainder of the loan will mostly be used in stabilising European currencies and meeting claims against Germany, chiefly by Belgium, and also in repaying the original Dawes £50,000,000 loan to Germany. Germany's reparations will simultaneously be reduced to £84,000,000 a .year. The terms of the huge loan will be 5i psr cent., with l\ per cent, sinking German financiers are enthusiastic, and think the scheme worthy of wsideration, but the Foreign Office, while admitting knowledge of the proposal, think that it is premature, and that Germany's annuities are over-high.