BRITISH LOAN

New Zealand Herald, Volume LXXV, Issue 23160, 5 October 1938, Page 16

BRITISH LOAN

AID FOR_PRAGUE PAiRLOUS_ PLIGHT HEAVY LOSSES PACED COST OF CESSIONS . By Telegraph—Press Association —Copyright (Received October 4, 6.15 p.m.) LONDON, Oct. 3 The diplomatic correspondent of the Daily Telegraph aayshfc understands that the £10,000,000 loan from Britain to Czechoslovakia is required to fortify the > national currency against immediate collapse. Prague is inquiring elsewhere with a view to raising further sums, says the writer. It is estimated that not less than £70,000,000 will be needed to oover the cost of reconstruction.

In view of the Czechs' tremendous material losses experts estimate that an even larger sum will be needed to place the new Czechoslovakia on a sound basis after the cession of- all the minority territories. Needs of Refugees

It is not contemplated in Prague that the British loan will be sufficient for the needs of refugees who are pouring in. They include many from Austria and Germany and are estimated to number 70,000. Tho total number of refugees is estimated at 800,000. It is clear that provision must be made for at least 500,000, most of whom .have left their homes with only their clothes. The financial correspondent of the News Chronicle says the £10,000,000 will not go far,. The new. frontier extends for hundreds of miles and must he provided with Customs houses, frontier posts and defences. Even' the whole £30,000,000 requested would not compensate Czechoslovakia for the economic injuries she has suffered as the result of partition. ■ / ' :

. Loss ol Mineral Resources The Czechs have been deprived of most of their, developed mineral resources, except minor coal and lignite deposits and all their best industries including glass and porcelain and', the most important textiles. Even the industries retained are mostly cut off from raw materials! : The transport system will require large-scale reorganisation. New ' ports are needed on the Danube the Elbe. Probably Czechoslovakia will lose - onequarter of the population of one-fifth of her area, but the proportion of her national income lost will be higher, and is competently estimated at at 'least half. , The announcement of the £10,000,000 loan .to Czechoslovakia by Britain is welcomed in Paris, says a message from that city, as ; an important, contribution to maintaining Czech independence ... 'France is now considering • the problem of French capital,sunk in loans to,' .'Czechoslovakia,, recognising that Prague may find difficulty in meeting the interest now that rich industrial areas near- her frontier have been taken over by Germany, , ; <