MORATORIUM FINALITY NEARER

Dominion, Volume 24, Issue 239, 6 July 1931, Page 9

MORATORIUM FINALITY NEARER

France and America Reach Agreement jGREAT BRITAIN’S SACRIFICES No Further Commitments, Says Mr. Snowden (United Press Association.—By Electric Telegraph.—Copyright) (Rec. July 5, 5.5 p.m.) Paris, July 4. An agreement has been reached between France and America regarding the German reparations. A communique issued after midnight stated that' Mr. Andrew • Mellon, Secretary of the United States Treasury, had confirmed the United States’ acceptance of the principle of Germany’s payment of the unconditional annuity under the Young Plan. Other important divergencies and views have been smoothed out. Those remaining are of lesser consequence and are being submitted to Ministers to-day.

ALL MUST SHARE France and Guarantee Fund MR. SNOWDEN INSISTENT (Rec. July 5, 5.5 p.m.) London, July 4. Speaking on the Finance Bill in the House of Commons, and, he believed, cellor of the Exchequer, Mr. Philip Snowden, said the Government and the House o Commons, and, he believed, the whole country, were quite willing to shoulder the sacrifice they had already declared their willingness to bear, but the Government would not be prepared to make further sacrifices unless other parties to President Hoover’s proposals were prepared to co-operate in those sacrifices. Mr. Snowden’s cryptic statement related to the twenty-five millions guarantee fund which France under the Young Plan is required to deposit in the Bank of International Settlements

In the event of Germany declaring a moratorium. France argued that if she did not retain the unconditional annuity under the Hoover moratorium scheme she should not be required to provide this twenty-five millions In the event of a subsequent moratorium under the Young Plan. Seeking a way out of the deadlock, she suggested tentatively that Britain agree beforehand to forgo her share of the deposit, thus leading the way to the other Powers concerned and relieving France of the necessity of making the deposit. Mr. Snowden declined to tie Britain to any further commitments. It is understood that under the agreement reached last night France and the United States recognise that the question of the guarantee is not to arise during the year of the Hoover moratorium. If Germany thereafter declare a moratorium regarding the conditional annuities the unconditional annuity to France will offset any oblige-' tlon on her part to pay the deposit On the other hand, if Germany did not pay even the unconditional annuity, then France, by arrangement with the other parties to the Young Plan, would be absolved from the deposit provision.