CUT OFF INTERCOURSE

Evening Post, Volume CXVII, Issue 146, 22 June 1934, Page 9

CUT OFF INTERCOURSE

IF COUNTRIES ENFORCE

CLEARING HOUSE PLAN

onlted Press Association—By Electric Tele-

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(Received June 22, 1 p.m.)

BERLIN, June 21,

In the course of an address at a diplomatic journalistic reception Dr. Schacht declared that Germany would terminate all intercourse with, any countryattempting to enforce a clearing system in connection with -the transfer moratorium. No distinction would be drawn between Britain and the Dominions and therefore a clearing system would disadvantageous^ affect the whole Empire. ■ . ■>. ■

Germany, ho said, had declared a moratorium because the only solution of the transfer problem, which was insoluble by threats, lay in the return of the German colonies as a source of raw materials and as consumers of Germany »s the volume of which must be increased. The solution also lay in the reduction of debts by writing off a portion of excessive interest and reducing the rate: payable. If Germany was ,not allowed additional exports, the resumption of the debt service would be impossible.