TWO ALTERNATIVES

Inangahua Times, 6 July 1934, Page 3

TWO ALTERNATIVES

OFFERS TO DOMINIONS.

LOANS RISE. . (United Press Assn.—By Electric TelegTagh—Copyright.) LONDON, July 5. A well informed spec: a:* correspondent of tire Daily Telegraph, states that Britain has offered the Dominions the choice of two alternatives. one is a levy of a penny a pound on all im-'

s portcd l3eef > coupled with a voluntary' . scheme for the qualitative regulation ‘ j of imports from 51 the Empire in order' I to standardise these at the level of the* year ended June, 1932. The other | ; alternative is that Britain should im-' pose a compulsory drastic restriction on the volume reaching the Home ’ market. Argentine’s agreement is required for the execution ef the first J alternative. j The Conference reserved for further! consideration the extent to which it I is intended to grant preference to the Dominions. Britain pointed out pure- 1 . ly temporary measures, which would '. save the farmers from ruin during the - two year period which must be Used £ to work out permanent schemes. e The Dawes and Young loans rose by \ two to three points, after the news of the agreement which was favourably

Permission to pay the Young Loan in sterling, is a concession since the bonds provide that interest he paid on a gold basis. Moreover, hitherto the German Government transferred their interest payments on loans to the-Bank I of Settlement in month-j ly instalments. A transfer will now! be effected not earlier than when inter-1 est is due, namely half yearly, providing a welcome breathing space. f

ITALY AND ABYSSINIA. LONDON, July 4. The Chronicle’s Rome correspondent says that relations between Italy and Abyssinia are strained al- 1 most to breaking point owing to Abyssinia’s refusal to abide by the terms of the convention granting Italy the same economic commercial concessions as others, principally Japan, which recently acquired a vast cotton concession .

The situation is further complicated hy Abyssinia demanding promised trading facilities through Port Assab in the Italian possession of Eritrea. Warlike are in progress, warrior tribesmen being assisted in training and equipment by business people from Abyssinia. Mussolini has frequently declared that the Japanese menace to Italian trade in Abyssinia would be fiercely