CAPITAL WILL BE SAFE

New Zealand Times, Volume LII, Issue 12247, 19 September 1925, Page 19

CAPITAL WILL BE SAFE

IN MANDATED TERRITORIES EFFECT OF, LEAGUE DECISION. Australian and N.Z. Cable Association GENEVA, September 15. The League Council this afternoon discussed the Mandates Commission’s report, including loans, advances, and investment of public and private capital. On the matter of loans the council adopted a resolution declaring that the validity of ajl financial obligations assumed by the mandatory in conformity with the mandate, also all rights regularly acquired thereunder, shall in no manner be impaired by the fact that the territory is administered under, a mandate. The council adopted a' resolution confirming that the cessation of transfer of a mandate cannot take place unless the council is first assured that all the obligations legally assumed by the former mandatory will he carried out, and the acquired rights respected, the council agreeing to use ita fullest influence to ensure the fulfilment of obligations. Sir Joseph Cook (Australia) pointed out the ambiguity of the motion, asking who was to determine the transfer of a mandate. It was explained that it was purposely ambiguous, in order to avoid the question of sovereignty. Sir Joseph was satisfied, and did not press the point. He explains that the question of the cessation of a mandate through a territory acquiring its own government is not likely to arise at any time, at present envisageable, hut the very fact that ffle council had decided to protect the rights of private capital and mortgages would certainly have an important effect upon the development of New Guinea, removing any hesitancy to invest money, which was now given complete security, while the purchase of land was now safeguarded.