Greece Defends Default

Manawatu Times, Volume LV, Issue 6866, 24 May 1932, Page 7

Greece Defends Default

Alternative Currency Collapse PLEADS FOR TIME "" l Received Sunday, 9.50 p.m. (British Official Wireless.) RUGBY, May 21. / A reply has been received by the British Government to the recent protest of the British representative in Grecco supporting the formal protest made by the International Financial Commission at Athens against the failure of the Greek Government to carry out its legal obligations in regard to foreign loans. The British Government has been informed that the present financial situation of Greece compelled the Greek Government to suspend temporarily the transfer into foreign currency of sums for the payment of coupons of Greek loans maturing on May 1 because if such payments were continued a complete collapse of the drachma would follow since the only remedy for avoiding a Budget deficit would be a fresh issue of paper money. The Greek Government hopes the temporary suspension of the payments will enable it to await the results of the Lausanne Conference and reach an agreement with its creditors. It states that the creditors would benefit as Greece would be ablo to make them fair and as far as possible satisfdctory proposal. The Greek Government is prepared to submit the whole question to arbitration which might includo the capacity of Grecco to pay. Similar replies are understood to have been received by the French and Italian Governments. Venizelos Takes Stern Measures Received Tuesday, 10.30 p.m. LONDON, May 23. The Daily Express Athens correspondent reports that drastic cuts in the pay of the civil servants caused a strike of State employees and M. Venizelos decided to answer the challenge with a counter threat. Describing the general striko in the nation’s hour of crisis as tantamount to a revolution, he announced that all strikers would be tried by courtmartial. The bold order led to a series of clashes with the military. M. Venizelos resigne'd and the strikers decided to return to work.