GERMANY’S DEBTS

Hawke's Bay Tribune, Volume XXIV, Issue 8, 20 December 1933, Page 7

GERMANY’S DEBTS

DEFAULT IN INTEREST Creditors’ Claims Ignored BRITISH PRESS CRITICISM (British Official Wireless.) (Received 20, 12.30 p.m.) RUGBY, December 20. The central committee of the Reichl bank announced yesterday the eurtai ment, during the first six months o next year, of cash transfers in respec of interest payments on Germany’ medium and long term debt from 50 t 30 per cent. Interest on the Dawe and Young loans will continue to b transferred in full, but no amortisatioi payments will be transferred excep on the Dawes loan. “The Times,’’ commenting on thi further default, says:—“Altogethe the impression left by Dr. Schacht’ (president, of the Reichsbunk) handlin; of the debt question is anything bu favourable. It is idle to pretend tha the Reichbank and Government ar powerless to effect any increase in th' available supply of foreign exchange for these could, without question, bi stimulated by appropriate measures Indeed, it seems quite clear that if the; really desired to do so, Dr. Schacht ani the Government could very well con tinue payments, at least on tho presea scale, without inflicting any hardshij on the German people. “Throughout the negotiations Dr Schacht has displayed high-handed dis regard of legitimate claims of foroigi craOitors, which it is difficult to recon cite with perfect good faith, and hli preferential treatment of Swiss ant Dutch claims in particular introduced arbitrary discrimination which nc amount of sophistry can justify.” The “Morning Post” says:—“The view strongly held in this country i that no debtor has the right to diseri minate in this arbitrary fashion be tween his creditors. The British Gov eminent already has addressed a re monstrance to Berlin without apparen result, but they ought not to let the matter drop.”