BRITAIN’S WAR DEBT

Otago Daily Times, Issue 18765, 19 January 1923, Page 5

BRITAIN’S WAR DEBT

NEGOTIATIONS LESS PROMISING. MAY CAUSE YEAR’S DELAY. Press Association—By Telegraph—Copyright NEW YORK, January 17. (Received Jan. 18, at 9.15 p.m.) The New York Times’s Washington correspondent says: The JJritish and American Debt Funding Commissions are still at odds over the interest charge. There will be another meeting to-morrow, and, if .no progress is made, it is understood that the British Mission will ask for the temporary suspension of the negotiations. Several of its members are returning to England for a consultation with the Government. It is reported that the British continue to ask for a 3 per cent, rate, pointing out that the Bank of England is now lending money at that rate, but the Americans declare that such a low rate could not go through Congress. It appears that 31 per cent, is the lowest possible rate that Con-

gress is likely to accept. It is now also reported that the British will ask for a 60-vea.r funding period, while American sentiment is for a 50-year period. The situation is complicated bv the fact that the present Congress will dissolve on March 4, and unless President Hardin? calls a special session of the new Congress that bodv will not meet, according to the law. until December. Thus, if the negotiations are broken off, the debt settlement mav be delayed until next year.—A. and N.Z. Cable* * PAYMENTS AWAIT SETTLEMENT. WASHINGTON, January 17. (Received Jan. 18, at 8.15' p.m.) It is stated definitely that the British contemplate the immediate commencement of debt repayments as soon as an agreement has been reached and ratified. The payments will probably he by means of bonds, which wiU be deposited in the

United States Treasury, and part of which will, he redeemable yearly, in addition to interest. The American Government mav hold the bonds in the Treasury or place them on the American market.—A. and N.Z. Cable. EXCHANGE REELECTS DELAY, NEW Y'ORK. January 17-, The hitch in the debt funding negotiations is reflected in the sterling exchange rates, which fell to 4.64, but later improved to 4.65.—A. and N.Z. Cable.