RUSSIAN BONDS

Manawatu Standard, Volume XLIX, Issue 291, 7 November 1929, Page 14

RUSSIAN BONDS

REPUDIATION BY SOVIET. Considerably over £100,000,000, including £10,000,000 df Australian money, is involved in the claims of holders of Russian railway bonds if the bonds bo paid in full. Following on the agreement for the resumption of diplomatic relations between Russia and Britain, it is stated that arrangements have been made for the authoritative representation of these claims in the financial negotiations between Britain and the Soviet. When the revolutionary regime took control of the Government of Russia all foreign debts were repudiated, and the decree Was also extended to foreign investments. A great number of British investors was hit hard by the repudiation. The railway bondholders now demand that the Soviet decree of repudiation be officially annulled and the bonds be paid in full with compensation and interest accruing. Mr G. E. Gates, secretary to the bondholders’ ©ommittee, states that the claims amount to £100,919,483, excluding interest since 1918. It is estimated that about 10 per cent. —over £10.000,000 —is held by Australian investors. Surprise has been expressed in financial circles in Sydney at the intimation that £10,000,000 of Russian railway bonds are owned in the Commonwealth. It is thought that the 10 per cent, mentioned is largely held outside Britain, but not entirely by Australians.