GERMAN DEBTS

New Zealand Herald, Volume LXXV, Issue 23083, 7 July 1938, Page 9

GERMAN DEBTS

BRITAIN'S INTERESTS PAYMENTS AGREEMENT NEW PROVISIONS ANNOUNCED (Received July (i, 5.5 p.m.) British Wireless RUGBY, July 5 I lie Anglo-Gorman payments amendment agreement of July 1, which was published to-day, provides for a new arrangement for tho allocation of sterling by the German Keichsbank to pay tor German imports of United Kingdom goods. Under article 1 of tho payments agreement of November 1, 1934, the Reichsbank earmarked each month for payment of United Kingdom exports to Germany an amount of sterling equal to 55 per cent of the value of German exports to the United Kingdom, calculated on the basis of an average of German export statistics and Britain's import statistics. The 55 per cent is now superseded by an arrangement under which the Beichsbank will earmark each quarter to pay for Britain's exports the amount of £1,500,000 with the addition or subtraction of 90 per cent of tho excess or deficiency of an amount of £7,500,000 , for German (including Austrian) exports for the preceding quarter, calculated on the same basis as under the 1934 payments agreement. This means that as long as Germau exports yearly calculated on the above basis exceed £30,000,000 —and they exceeded that figure even in 1938, when German trade was at a low ebb —the amount to be earmarked for German imports of United Kingdom goods will be £18,000,000, that is, 60 per cent of £30,000,000, with the addition or subtraction of 90 per cent of the amount by which German exports to Britain exceed £30,000,000. If tho sterling proceeds of German exports to Britain arc not sufficient to make provision for sterling to be earmarked for German imports of United Kingdom goods and to cover Germany's financial obligations to Britain, it will* be open to Germany to approach Britain with tho view to the reduction of tho amount of sterling to be earmarked for United Kingdom exports.

The original Anglo-German debt agreement in 19.34 was received with approbation both in Britain and in Germany. The alternative at the time was a clearing arrangement, which was considered undesirable, particularly 0110 imposed without German consent. In fact, when the details of the agreement. were announced by Mr. Runciman in the House of Commons he stated that provision had been made for the replacement of the agreement should it be terminated, by a clearing arrangement. The working of clearing agreements with other countries had been quite other than was expected. Exporters to Germany, thinking that their proceeds were 'to be automatically converted into their own currency by their own Government, increased their deliveries far beyond the limit of current German export proceeds, and creditors' mark balances soared in Berlin. The present modification of the payments agreement is a confirmation of its elficacy in paying British exporters and creditors over the past four years.

PRICES OF METALS COPPER AND LEAD FIRMER TIN QUOTATION STEADY LONDON, July 5 Following arc to-day's quotations on the London metal market, compared with those of July 4:— July 5 July 4 Per ton Per ton JC 8 (1 £ S (I Copper, stan., spot 40 3. VA 30 11 IOVa Cop., stan., 3 mos. 10 8 V/ 2 39 18 iVa Copper, electrolytic 44 0 0 44 0 0 to to 45 5 0 ' 45 0 0 Copper, elect., wire bars .. 45 5 0 45 0 0 Lead, soft, spot .. 15 5 7'i 11 10 4Va Lead, soft, forward 15 9 4/j 15 1 10' j Spelter, spot . . I I 9 4Va 14 4 4Vi Spelter, forward 11 1-1 Wx It 9 '1 Vi Tin, stan., spot . . 101 5 0 3015 0 Tin, stan., 3 mos. 105 7 6 105 7 6 GOLD AND SILVER QUOTATIONS IN LONDON (Received July 6, 5.5 p.m.) LONDON. July 5 Fine gold is quoted to-day at £7 Os B§d an oz., compared with £7 Os 9jd yesterday. Silver is quoted at 19£ d an oz. spot, and 19|d forward, compared with 19id and 19d yesterday. Tho quotation for silver at per fine oz. is 20Jd, compared with 20|d yesterday. BRITISH EXCHEQUER LATEST WEEKLY RETURNS British Wireless RUGBY, July 5 The latest weekly Exchequer returns show that tho total ordinary revenue to date is £131,886,636, against £138,813,323 at tho corresponding period last year. Tho total ordinary expenditure amounts to £234,918,581, against £209,027,996 at June 30 last year. BROKEN HILL PROPRIETARY i — 1 I EXTENSIONS TO PLANT Reports from Newcastle indicate that good progress is being made with the work of extending the steam generating buildings and plant at tlie steel works of the Broken Hill Proprietary Company, Limited. These extensions are part of the big scheme adopted by the company some time ago. An outlay of £.500,000 is involved.. Another large work on which substantial progress has been made is that of extending tho wharfs. Tho superstructure will be supported on massive concrete piles made on the plant. The additional wharf accommodation will bo between 800 ft. and 900 ft.

MOTUROA OIL FIELDS The following report for the three months ended Juno 30, 11)38, has been issued by Moturoa Oil Fields, Limited, New Plymouth:—No. 1 well produced 490 Imperial gnllons of crude oil; total production to date, 37,238 gallons. No. 2 well produced 22,221 Imperial gallons of crude oil; total production to date, 951,32.1 gallons. No. 4 well produced 05(50 Imperial gallons of crude oil; total production to date, 182,1 It gallons. The total quantity of oil produced to date is 1,170,705 Imperial gallons.