FRANCE AND BRITAIN.

New Zealand Herald, Volume LXVII, Issue 20679, 26 September 1930, Page 11

FRANCE AND BRITAIN.

REPAYMENT OF DEBT. CLAIM OF RENTE HOLDERS. PARIS. Sept. 21. It is learned from official sources that the French Government contemplates a large-scale financial operation as soon as conditions are favourable. It is believed that it may comprise the redemption of part or whole of the 1915 5 per cent, rentes. The fact has belatedly leaked out that in this connection the Government received a Note in July from the British Chancellor of the Exchequer, Mr. Philip Snowden, backing the claims of British holders of rentes issued during the war and amounting to 1,641,000,000 francs, that they should be paid on a gold basis instead of with stabilised paper francs, which are worth 2d, compared with lOd beforo the war. Tt is recalled that France unyieldingly insisted on her borrowers repaying thendebts on a gold basis, yet she lias refused tho same right to British holders of rentes. It is admitted on behalf of these British holders that they have no legal claim. However, it is urged that their strong moral claim is accentuated by tho reflection that had Britain insisted on full payment of Hie French war debt Franco would not now be the largest gold holding country in Europe, with no unemployment, while Britain would not be under such a staggering income-tax and would not have such a huge number of unemployed.