TERMS OF AGREEMENT

Evening Post, Volume CXII, Issue 7, 8 July 1931, Page 10

TERMS OF AGREEMENT

FRANCE GETS HER WAY

THREE EXTRA POINTS

(British Official Wireless.) (Received Bth,July,-11 a.m.)

RUGBY,. 7th July

.The agreement* reached between the United. States and .France regarding President Hoover's proposal for a, suspension for one year of war, debts and reparation payments is expressed in the following terms:— (1) That tho payment of all war debts and reparations should be suspended for one year. (2) That the German .Government shall continue the payment of unconditional anilities during this period. But the Preach Government agrees, insofar as it is concerned, that the payments thus made by Germany shall be invested by the Bank for International Settlement in guaranteed bonds of the Gorman railways. (3) That the suspended payments shall bear interest in accordance with conditions suggested by the United States Government, and shall be repayable in ten annuities as from Ist July, 1933. (4) That the same conditions shall apply to bonds issued by the German railways. On three points not directly concerning the, American Government observations are made by the French Government. They declare that: (1) Common action shall be taken by the principal central banks through the Bank for International Settlement to organise finance for those : European countries who are particularly affected by tho proposed suspension of payments. (2) There shall be an.agreement be-' twecn Franco and. tho Bank oT International Settlements to the effect that France shall not be called upon to complete the guarantee fund required by the Young Plan, except by equal monthly payments at the demand of the Bank for International Settlement, and following the effective transfer of payments made by Germany. (3) So far as concerns other technical adjustments necessary by the American proposal and the French agreement a Committee of Experts shall be appointed by the interested Powers to reconcile the needs with the terms of President Hoover's proposals. Franco .reserves the right to call upon tho Reich for a trustworthy guarantee that the savings thus effected in the German Budget shall be deposited to the purpose of economic needs.