EMPIRE AND MORATORIUM

Greymouth Evening Star, 11 July 1931, Page 7

EMPIRE AND MORATORIUM

UNANIMOUS ACCEPTANCE GENEROSITY TO GERMANY [OFFICIAL WIBELESS.] RUGBY, July 10. A letter has been addressed by the Treasury to the President of the Bank of International Settlements stating that the Governments of Britain, Australia, Canada, New Zealand, South Africa and India have accepted in principle, the proposal made by Mr Hoover, but certain outstanding questions as regards the method of giving effect to Mr Hoover’s proposal, remain to be settled by the Governments concerned.

In the meantime, the monthly instalment of the German annuity falls due on July 15, but even if the German Government were in a position to transfer this instalment, to demand it would be manifestly inconsistent w’ith the acceptance in principle of Mr Hoover’s proposal above-mentioned. The Governments have therefore decided to refrain insofar as they are concerned, from claiming any payment in respect of instalments of both the unconditional and conditional annuity falling ’due on July 15,; without prejudice to the rights,' of bondholders of the German external loan, 1924, and the German Government 5J per cent, international loan, 1930, and on the understanding that -the terms and conditions of suspension of this payment and of the eventual transfer of the amount suspended, be those agreed upon hereafter, for giving effect to< Mr Hoover’s proposals abovementioned.

The Governments feel it is necessary to add that their decision is taken with the object of giving immediate relief to existing difficulties in Germany, in accordance with Mr Hoover’s proposal, by complete suspension of transfers, -whether in cash or kind, and it must not be understood as implying any derogation from the rights of these Governments under The Hague agreements insofar a& any payments may be transferred by Germany. It is officially announced that the British Government has issued an invitation to France. Italy, Japan, Belgium and Germany, for a meeting of financial experts to consider the measures necessary to give effect to the debt suspension plan of Mr Hoover. An invitation will also be sent to the United States. The meeting will be held in London, on Friday, July 17, at 11 o’clock, under the chairmanship of Sir Frederick Leith Ross, of the British Treasury. THE FIRST STEP ONLY.

LONDON, July 9.

Mr J. H. Thomas (Secretary for the Dominions), in a speech at Ipswich, said that the importance of the Hoover Plan must lie in a reconsideration of the w’hole situation. It could not be assumed, unless other steps .were taken, that the position would be any better in 12 months’ time. America had discovered, he said, that she could not prosper if her neighbours were in a state of poverty.

GERMANY’S “BLACK FRIDAY.”

(Received July 11,11.30 a.m.) BERLIN, July 10.

To-day was described as another “Black Friday” for Germany. Dr. Luther spent the day in a series of conferences in Paris, but it is understood that both there and at London he camo away empty-handed from hi. 3 search for eighty millions sterling credits for the Reichsbank.

The outflow of foreign exchange con:inues at th© rate of two to three miliions daily.