POWERS IN AGREEMENT.

New Zealand Herald, Volume LXVIII, Issue 20950, 13 August 1931, Page 11

POWERS IN AGREEMENT.

WAR DEBTS MORATORIUM.

SETTLEMENT OF DETAILS.

REPAYMENT IN 10 YEARS.

EXPERTS' PLAN APPROVED.

By Telegraph—Press Association—Copyright, British Wireless. RUGBY. August 11.

The conference of experts appointed by Belgium, France, Britain, Germany, Italy and Japan to consider the detailed measures required to give effect to Mr. Hoover's war debts proposal lias issued a communique, which states that complete agreement was reached on the detailed measures required to give effect to the proposal in the case of the payments by Germany under tho Hague agreement.

Tho experts' recommendations have been approved by the Governments represented and also by the Governments of Australia, Canada, Czechoslovakia, Greece, India, New Zealand, Portugal, Poland, Rumania and South Africa.

The conference recommends that the payments both of reparation and of the inter-allied debts suspended during the Hoover year should be repaid by 10 equal annuities from July 1, 1933, to include both principal and interest at a rate not exceeding 3 per cent.

The conference makes this recommendation on the assumption that the system will be acceptable to tho United States Government as regards the debts due to it. The repayment of the annuities will be an absolute obligation, involving no option of postponement. The German Government pointed out that in accepting the proposal it did not intend to express any opinion as to Germany's future capacity for payment. It agreed that the unconditional annuity should continue to be paid, provided it was immediately lent again to the German Railway Company.

With regard to deliveries in kind, the conference decided that any arrangements designed to permit the continuation of the contracts for deliveries in kind must involve no charge on the German Budget during tho year, and no injury to German economy.

It is stated that an agreement has been reached between the German and Belgian Governments on the question of the mark.

The conference also agreed on recommendations as io the detailed measures for the suspension of the inter-aliied war debts due to Britain from France and Italy, .and of the payments under the Hague agreement with Czecho-Slovakia. Agreement was reached on principle that the payments due by.Hungary under the Paris agreement of April, 1930, and the payments by Bulgaria under the Hague agreement, should be suspended during the year, subject to certain adjustments. AMERICA GRATIFIED. PRACTICAL PROGRESS MADE. PAYMENTS DUE MONTHLY. WASHINGTON. August 11. The State Department announces that under the agreement reached at London to make Mr. Hoover's debt moratorium effective, all the suspended payments become unconditional obligations of the debtor Governments, to be repaid over 10 years, beginning on July 1, 1933, with interest at not less than 3 per cent, from that date. The repayments are to be made in 10 equal instalments, each divided into 12 monthly payments, including principal and interest. The American Government savs it is gratified at the progress made in giving practical effect to the suspension of debts suggested by the President, Mr. Hoover, on June 20. EFFECT IN GERMANY. 1 REDUCTION IN BANK RATE. BERLIN. Anpust 11. The German bank rate has been reduced from 15 to 10 per cent.