Prepared to Retaliate

Manawatu Times, Volume LIX, Issue 7493, 18 June 1934, Page 7

Prepared to Retaliate

German Reply to Proposed British Action CLEARING- OFFICE CREATION BY BRITAIN “ NO DISCUSSIONS UNDER PRESSURE ” (United Press Association—By Electric Telegraph—Copyright. Received Sunday, 7 p.m. BERLIN, June 16. A semi-official communique declares that Germany is ready to discuss with Britain a settlement of the questions arising from the moratorium. Such discussions are already in progress with the Dutch and Swiss Governments, but Germany must decline discussions under pressure and the threat of compulsory clearing. The communique adds that the British Government apparently assumes that Germany still has a considerable favourable trade balance to England. It is overlooked, however, that, with the Empire as a whole, Germany had an adverse trade balance of 60,000,000 marks for the first quarter of 1934. Therefore, compulsory clearing would more seriously damage British trade interests than German. Anyhow, the German Government is determined to answer any one-sided British action against German exports with corresponding measures against British imports into Germany. In Default of Agreement BRITAIN WILL TAKE ACTION. LONDON, Juno 13. In t lie House of Commons, Mr. Neville Chamberlain, Chancellor of the Exchecpicr, announce! that the British Ambassador had informed the German Government that Britain intended shortly to legislate to create an AngloGerman cleaving office, but was prepared to refrain from this action if a satisfactory agreement ensuring fair tieatmcnt to British bondholders was negotiated before July 1. Anyone purchasing German bonds from foreigners would do so at his own risk. Mr. Chamberlain said that imports and exports between Germany and the Dominions would not be involved in the proposed legislation.