REPARATIONS LOAN

Nelson Evening Mail, Volume LXIV, 29 May 1930, Page 5

REPARATIONS LOAN

STATEMENT BY MR SNOWDEN (British Official Wireless) RUGBY, 27th May. Answering a number of questions regarding the Reparations loan under the Young Plan, Mr Snowden, Chancellor of the Exchequer, in the House of Commons to-day said the detailed conditions of the proposed issue of reparation bonds were still under discussion between representatives of the governments and of the banks concerned, and he could not yet say definitely what the precise form of the bonds would be; but he had made it clear to the British representatives that he could not agree to any modification of the provisions included in the experts' plan with a view to protecting the interests of London markets and, in particular, that he would object to any arrangement under which either principal or interest on the bonds of foreign issues was payable at the option of the holder in sterling at par ot exchange. Subject to this details of the bonds would have to be settled by agreement consistently with the Plan. It would not have been possible to ensure success of the loan if no issue had taken place in London and he did not think it would have been reasonable or consistent with the position of London, as the financial centre, to refuse the issue in London, provided that it was subject to the condition that the proceeds would be paid to the British Exchequer.

Mr Snowden added that the money subscribed would bo applied to the redemption of the national debt.