AGREEMENT REACHED

Manawatu Standard, Volume LI, Issue 183, 6 July 1931, Page 7

AGREEMENT REACHED

FRANCE AND AMERICA.

SUSPENSION OF WAR DEBTS.

MAIN PROBLEMS OVERCOME

(United Press Association.—By Electric Teelgraph.—Copyright.) PARIS, July 4.

An agreement has been reached between France and America regarding the German reparations. A communique issued, after midnight stated that Mr Andrew Mellon, secreary of the United States Treasury, had confirmed the United States acceptance of the principle of Germany’s payment of the unconditional annuity under the Young Plan. Other important divergencies and views have been smoothed out. Those remaining are of lesser consequence and are being submitted to the Ministers to-day.

FRENCH MINISTER’S STATEMENT.

PARIS NEGOTIATIONS,

(British Official Wireless.) Received July 6, 10.30 a.m. RUGBY, .July 4

Regarding the negotiations on Mr Hoover’s proposals, a communique has been issued by the French Minister of the Interior in the following terms:— “Representatives of the United States and French Governments continued their examination of Mr Hoover’s proposals and the French Notes in reply thereto. Mr Mellon informed his French colleagues that the United States Government had decided to accept the principle of the maintenance of payment by Germany of the nonconditional portion of the German debt as provided by the Y'oung Plan. “Other divergencies of view were settled, and others which remain, and which are of minor importance, will bo submitted to the Minister to-day.”

GUARANTEE FUND

POSITION EXPLAINED,

LONDON, July 4

Mr Philip Snowden’s cryptic statement in the House of Commons when dealing with the Finance Bill related to the twenty-five millions guarantee fund which Franco under the Young Plan is required to deposit in the Bank of International Settlements in the event of Germany declaring a moratorium. France argued that if she did not retain the unconditional annuity under the Hoover moratorium scheme she should not be required to provide this twenty-five millions in the event of a subsequent moratorium under the Young Plan. Seeking a way out of the deadlock, she suggested tentatively that Britain agree beforehand to forego hexshare of the deposit, thus leading the way to the other Powers concerned and relieving France of the necessity of making the deposit. Mr Snowden declined to tie Britain to any further commitments. It is understood that under tlie agreement reached Last night France and the United States recognise that the question of the guarantee is not to arise during the year of the, Hoover moratorium. If Germany thereafter should declare a moratorium regarding the conditional annuities, the unconditional annuity to France will offset any obligation on her part to pay the deposit. On the other hand, if Germany did not pay even the unconditional annuity, then France, by arrangement with the other parties to the Young Plan, would be absolved from the deposit provision.

Speaking on the Finance Bill in the. House of Commons, Mr Snowden said the Government and the House of Commons and, he bplieved, the whole country, were quite willing to shoulder the sacrifice they bad already declared their willingness to boar, but the Government would not bo prepared to make further sacrifices unless other parties to President Hoover’s proposals were prepared to co-operate in those sacrifices.