DR. SCHACHT'S NEW MOVE

Press, Volume LXX, Issue 21198, 23 June 1934, Page 13

DR. SCHACHT'S NEW MOVE

* Boycott of British Empire MORATORIUM DEFENDED (BHITEB PRBS3 ASSOCIATION—BY ELECTEIO TELEGRAPH—COPYRIGHT.) (Received June 22, 5.5 p.m.) BERLIN, June 21. In an address to diplomats and journalists, Dr. H. Schacht, president of the Reichsbank, declared that Germany would terminate all intercourse with any country attempting to enforce the clearing-house system in connexion with her moratorium on foreign debt transfers. No distinction would be drawn between Great Britain and her Dominions. Therefore, the clearinghouse system would disadvantageoasly affect the whole British Empire.

Germany, he said, had declared the moratorium because the only solution to the transfer problem, which was insoluble by threats, lay: (a) In the return of Germany's colonies to provide her with a source of raw materials and consumers of her exports, the volume of which must be increased.

(b) In a reduction of the debts by writing off a portion of the excessive interest and reducing the rate payable. If Germany was not allowed additional exports, the resumption of the debt service would be impossible.