FOREIGN DEBTS

Hawke's Bay Tribune, Volume XXIII, Issue 150, 9 June 1933, Page 7

FOREIGN DEBTS

GERMAN MORATORIUM DAWES AND YOUNG PLANS SUSPENDED. TEMPORARY MEASURE. By Telegraph—Press Assn.—Copyright. (Received 9, 12_.40 p.m.) BERLIN, June 8. The Government has declared a general moratorium on all credits granted to Germany prior to July 1, 1931, because it was the banking crisis of that month which caused Germany’s present financial position. Transfers will be made as far as possible on credits granted after that date. The existing stand-still agreements are at present not affected, birt Dr. Schacht hopes to ?”tain alleviation during the forthcoming negotiations in London. The Dawes and Young Plans are suspended. Private debtors must continue their payments into a special conversion fund, which the Reiehsbank promises to convert into foreign currencies whenever possible.

Dr. Schacht, in a letter to tho Government, emphasises that the moratorium is only temporary and that Germany intends to meet her obligations in the future.'

The moratorium begins on July 1. Dr. Schacht stated that the delay would enable modifications to bo discussed with creditors in London on June 13, also the World Conference would be able to seek amelioration effects for the stoppage. He hoped that the wor Id would receive the news without anger and recognise that it was an international problem, remembering that Germany had to earn suffi cient in foreign currencies to enable her to pay- her debts.