RUSSIA'S OLD DEBTS.

New Zealand Herald, Volume LXV, Issue 20087, 26 October 1928, Page 13

RUSSIA'S OLD DEBTS.

BONDHOLDERS' INTERESTS.

STRONG COMMITTEE FORMED. INTERNATIONAL CHARACTER. (Received October 25. 5.28 p.m.) British Wire-lose. RUGBY. Oct. 0-1 In financial circles importance is attached to the formation of an international committee, with Lord Rovelstoke as chairman, to protect the interests of holders of Russian bonds. Represented on this body is an imposing lis* of associations covering the principal countries in Europe. The committee will concern itself exclusively with bonded debts which ionst.it uto a direct obligation of the Russian Government, or of a Russian municipality, or which contain a guarantee of cither of these authorities.

The associations represented on the committee have bound themselves not to conclude anv separate settlement iri respect of debts, cither with the Russian Government or with any successor State, nor to be party to any arrangement unless the benefits of that arrangement aro open to be shared on an equal footing by people of all nationalities in tho countries represented on the committee.

Political aims or a motive of hostility toward Russia are disclaimed by the committee. Its solo objects arc to safeguard the interests of the bondholders. The influential nature of the committee is indicated by its members. They include Mr. Lionel Rothschild and Lord Revelstoke (Britain) tho representatives of two French banks, the chairman and vice-chairman of (he Dutch Stock Exchange and German financiers. It is remarked in the London press that the committee is powerful enough to place tho position of the Russian bondholders before any Russian Government which should desire to raise fresh loans before considering tho rights of (he holders of the existing bonds.

Apart from debts due under bonds Russia, at March 31, 1927, owed the British Government a 'capital sum of £842,969.119 for war advances. The Council of Foreign Bondholders reported in 1923 that Russia owed £1.746.274,182 of principal. Other unpaid foreign private debts totalled over £36.000,000. The interest unpaid was over £486,000,000. These sums included debts not repaid by certain of the Southern States of America.