DEBTS OF GERMANY

Hawera Star, Volume LIV, 30 April 1934, Page 5

DEBTS OF GERMANY

SUGGESTION OF MORATORIUM

CONFERENCE WITH CREDITORS

FURTHER. DISCUSSION PLAINNHD

STRICT SECRECY OBSERVED

(United Press Association—By Electric Telegraph Copyright)

LONDON, April 28. The conference at Berlin between representatives of the Reich sbank and Germany's creditors who tentatively exchanged views was adjourned until April 30, but the two principal subcommittees have been working all day. It is understood one is investigating the amount of foreign currency at Germany's disposal and the other is dealing with Germany’s currency control. The strictest secrecy is being observed regarding.their deliberations, but there are indications that the .difficulties are far from a solution.

.Meanwhile there is a tendency to discount the- effect of Anglo-French representations. The “Angriff” de-clareff-'Di'T Schacht will' pot' allow 'h imsejf . “to be put under pressure.” The “Deutsche Allegemeine Zeitung,” arguing in a similar manner, expresses the authorities’ wish and hope that the British move does not mean pressure so, much . as a desire for information. Negotiations between the British and American creditors and the German Government, with the later participation of the Reichsbank, ended early in February in an agreement. The German Government undertook to cease the -discriminatory agreements as from June, and the Reichsbank found a way of paying creditors more than previously. * ’ The foreigu creditors agreed that Swiss and Dutch agreements' should continue until. June 30, 11934. This concession, however, was given onlv asrainst the written undertaking of the German Government that such separate agreements .should thereafter cease and. that at a conference of all medium and long-term creditors this month the principle that there should' be no discrimination in favour of any country should be strictly observed. The Reichsbank agreed to a guaranteed purchase price of 67 per cent, for the. non-transferable 70 per cent. £paid in . “scrip” hitherto negotiable by the creditor at 50 per cent, of its face value). As the creditor thus received 30 per cent, in cash and ultimately another 46.9 per cent, for his scrip, he will receive in all 76.9 per cent, of his duties. Under the arrangement enforced on January 1 be received only 65 oer cent. The benefits of this agreement, which was concluded bv the British and American medium and long-term creditors in negotiation, with the German Government and the Rleiohsbank. automatically accrued to creditors of other countries.