THE NEAR EAST

Otago Witness, Issue 3613, 12 June 1923, Page 27

THE NEAR EAST

GREEK FINANCIAL CRICTS. ATHENS, June 3. The exchange is now 110 drachmai ix» the £. This Uas caused the ruin of many banks, which incurred enormous losses, as they had converted nearly all their funds into foreign currencies. The Government came to the rescue by issuing 000,000,000 drachma notes which, however, afforded: only temporary relief. Angry and threatening crowds besic-ged several of tha banks, which remained open all day on Sunday paying out what they could, having received a loan of 250,000,000 drachmai from the National Bank, whoso position is quite sound, as it lias not converted ita funds. Ten of tlie richest bankers became penniless, and many financial kings lost their all in wild speculation. Several have been arrested. Among those arrested is Afenduba Prandos, associate director of the Bank of Commerce, who borrowed 6,000,000 drachmai from it and lost every drachmai in speculation. An industrial panic also arose, numerous employers suddenly realising that they were paying their workmen salaries which had risen to be small fortunes. This caused a crisis in the tobacco trade, which does most of its business with England. The Greek importers of English merchandise, who had been paying in drachmai, found that the drachma had improved greatly in value that they were faced with bills amounting to four times as much aa the merchandise was worth. They refused to pay, and reshipped the cargoes to England. JUDICIAL DECLARATION BY TURKS. LAUSANNE, June 4. The terms of the judicial declaration Dy the Turks have been settled on the following lines:—Arrests, seizures, and domiciliary visits in Constantinople and Smyrna shall lie notified to the foreign legal advisers immediately they occur. The advisers will number four, whose salaries and conditions of service will be fixed bv Turkey in consultation with The Hague International Court. Mr Joseph C. Grew (American Minister) warned the Turks that the declaration must be interpreted in the most liberal sense if Turkey is to attract foreigners to her aid in the reconstruction of the country. DELAYS AT LAUSANNE. CONSTANTINOPLE, June 7. In view of the delays at Lausanne, a group of Nationalist army officers sent a memorandum to Ivemal Pasha demanding that negotiations be broken off. They declare that the army is capable of evicting the Allies from Constantinople. EARLY EVACUATION AWAITED. LONDON, June 3. The Daily Express Constantinople correspondent, who has just returned from a visit to the Dardanelles, states that the troops there welcome the prospect of an early evacuation. The mushroom town of Kelia is ready to disappear at the first word from Lausanne. The graves of our dead are splendidly tended. The Turkish forces face the British in tranquility, except for occasional bickering about the possession 0 f barbed wire at certain points. ULTIMATUM TO TURKEY. LAUSANNE, June 9. The Allied representatives have decided to send an ultimatum to Ismet Pasha oo Monday, bx-eaking off negotiations unless tlie Turks change their attitude in regard to the Ottoman debt.