INTERNATIONAL FINANCE

Hawera Star, Volume XLVII, 4 January 1928, Page 5

INTERNATIONAL FINANCE

GERMAN REPARATIONS. NEW SCHEME PROPOSED. REPAYMENT OF ALLIED DEBTS. BY CABLE-PRESS ASSOCIATION—COPYRIGHT. BERLIN, Jam. 2. The “Deutsche Bergweiks Ze.itung” says that a new scheme for German, reparations and war debts settlement has been .drafted by .American bankers to replace the Da.wes plan. it w,as believed that the crux of the scheme is an international bank consortium wherein Governments participating will float- a loan for £1,200,000,(XX) whereof £850,000,000 will be paid tq the United States in settlement of all allied debts, after which presumably Britain will abandon her claims against France. Belgium and Poland while America will cancel £1,550,(XX),000. The remainder of the loan will be .mostly used in stabilising European currencies and meeting claims against Germany, chiefly by B-'g'im, also tspaying the original Dawes fifty million loan tv) Germany. The latter’s reparations will simultaneously be reduced to £84,000,000 annually. The terms of the huge loan will be 5J per cent., with 1£ per cent, sinking fund. • German financiers are enthusiastic and think the scheme is worthy o.f consideration, but the Foreign Office, while admitting a knowledge of the proposal, thinks it is premature and that Germany’s annuities are too high.