GERMAN OBLIGATIONS

New Zealand Herald, Volume LXX, Issue 21515, 12 June 1933, Page 9

GERMAN OBLIGATIONS

EFFECT OF MORATORIUM CONCERN IN SWITZERLAND (Received June 11, 5.5 p.m.) LONDON, June ]0 Opinion in tho City is critical of Germany's action regarding the moratorium, but it is regarded as inconceivable tliat she really intends to default oil the Young and Dawes payments, as lliis obviously would strike a deadly blow at her credit at a time when she needs credit most,. To-day's recovery iu German bonds from the lower levels touched at the outset is based on hopes in connection with the meeting to be held in London ou Tuesday ol Germany s long-term creditors and representatives of the Bank for International Settlements. The Geneva, correspondent of the Manchester Guardian says Germany's moratorium has caused enormous discontent iu Switzerland in view of the extremely largo capital investments in German public and private loans, including the l)aw«-s and, Young loans. Tho Swiss Cabinet is asking Parliament for authority to take economic reprisals against German imports. FRENCH RETALIATION PROPOSED SURTAXES "I'AKJH. .71111n *.l Apparently in retaliation for the German moratorium, the French Government has tabled bills to authorise customs surtaxes as a reprisal on foreign Governments which adopt measures injurious t<> French trade, iilso n new l a rill on goods from which the quota system has been removed. Franco-German trade at present shows ,'i balance of 122,000,000 in favour of Germany.