LOAN FOR GERMANY.

Manawatu Standard, Volume XLIII, Issue 421, 12 June 1922, Page 5

LOAN FOR GERMANY.

SUGGESTION BY BANKERS. FRANCE WANTS TOO MUCH. By Electric Telegraph—Copyright. LONDON, June 10. The Daily Express’s Paris correspondent states that tho bankers’ committee has adjourned for three months, the committee suggests as essential to a German loan (1) a reduction of tho indemnity by half; (2; the lenders to have prior rights over all other claimants to collect Customs anti other German security; (3) Germany to receive half the amount of the loan; (4) Ger many not to be obliged to pay any part of the indemnity lor three years and haw power to control her own finances, includin' taxation.

France puts forward impossible term* namely: Tho cancellation ot all war debu duo to America and Britain, and the cancellation of the British share of tho indemnity. The acceptance of these terms cannot be considered. France argues that Britain had a fair share in the seizure of tho German Navy/ the destruction of her mercantile marine, and the transfer of her colonies.—A. an N.Z. cable. FAILURE OF AGREEMENT. PARIS, Juno 10. The failure of tho Allied Governments tS reach a unanimous agreement on tho scope of their authority is the main cause for the adjournment of the bankers’ committoe? Mr J. Pierpont Morgan furnished anothof reason, namely that no great international loan could be very successful in America until next spring—A. and N.Z. cable. BANKERS 1 ’ OFFICIAL REPORT. NO LOAN AT PRESENT TIME. Received June 12, 8 a.m. PARIS, June 10. Official; As soon as tho Committee met they were unanimous in the opinion that ‘ they could not within the limits of the terms of reference, understood in the most restricted sense, oiler any prospect ot an international loan. They decided that for the time being they could not usefully continue their deliberations _m response to the invitation from the majority of tho Reparations Commission because (1) France is Germany’s chief creditor, and the bankers are all extremely anxious that no action of theirs would injure I ranees interests; (2) the committee consider that a favourable atmosphere is essential to the successful dotation of a loan, and tho known differences amongst the members of_ the Reparations Commission as to the limits of the committee’s mandate has created for the time being an unfavourable atmosphere for the ins tie of such a loan. The committee, although obliged to express an unfavourable opinion regarding the possibilities of a loan for Germany in the oresent situation, declares its conviction that if the conditions necessary to the revival of Germany’s credit were realised, substantial loans could be successfully floated in all tho principal markets of the world. The committee considers that .the financial conditions are now more favourable for tiie issue of such loans than at any other time since tho war. The committee assures the Reparations Commission ot its strong desire to help in the issue of such loans, and therefore if the commission unanimously renewed such an invitation us was now made by the majority only tho committee would be happy to resume its deliberations now interrupted.

All the members of the committee except the French signed the report. —A. and N.Z. cable.