AUSTRIAN DEBTS

Otago Daily Times, Issue 23529, 18 June 1938, Page 16

AUSTRIAN DEBTS

GERMANY’S ATTITUDE OFFICIAL REPUDIATION BRITISH HOLDERS CONCERNED (United Press Association) (By Electric Telegraph—Copyright) BREMEN, June 16. In a speech at Bremen, Herr Funk said; “In view of international practice, Germany cannot be expected to assume responsibility for the Austrian debts. Political debts cannot be converted into commercial debts because private creditors replaced the State.” He recalled that Britain refused to recognise the debts of the Boer Republic after the Boer War. that the United States repudiated the debts of the southern States after the Civil War, and that France did not pay the debts of Madagascar. The money lent to Austria was merely for the purpose of bolstering up the political system, and, although Germany would honour commercial debts, she regarded political debts' as detrimental to trade and industry.

He added: “Germany cannot tolerate the position of her foreign loans. An arrangement must be made wherebv the unjustifiable interest rate of from to 7 per cent, is reduced to a more normal, level.” i

Herr Funk added that Nazi Germany never regarded the Dawes or Young loans as private loans. Herr Funk’s speech is a formal and official repudiation of Austrian debts, of which £8,000,000 is owing to British investors. Britons also hold £16,500,000 7 per cent. Dawes loan and £11,000,000 5J per cent. Young loan.