TO OUST DAWES PLAN

Sun (Auckland), Volume I, Issue 243, 4 January 1928, Page 1

TO OUST DAWES PLAN

NEW REPARATIONS IDEA BANK CONSORTIUM SCHEME By Cable.—Press Association. — Copyright. BERLIN, Monday. The newspaper “Deutsche Bergweiks Zeitung” says a new scheme for the payment of German repa- j rations and the settlement of war debts has been drafted by American bankers to replace the Dawes plan. TT is believed the crux of the scheme is an international ba.nk consortium, in which the Governments concerned will participate, and which will float, a loan of £1,200,000,000, of which £850,000,000 will be paid to the United States in settlement of all Allied debts. It is presumed that after this Britain will abandon all its claims against France, Belgium, Poland and Italy, while America will cancel the sum of £1,550,000,00 owing to her. The remainder of the loan mostly will be used for stabilising European currencies and meeting claims against Germany, chiefly from Belgium, also for repaying the original loan of £50,000,000 made to Germany under j the Dawes plan. The German repara- j tions will simultaneously be reduced to £84,000,000 a year. The terms of the huge loan will be 51 per cent., with a sinking fund of 11 per cent. German financiers are enthusiastic over the scheme, and think it is worthy of consideration, but the officials at the Foreign Office, while admitting knowledge of the proposal, think it is premature for Germany. The proposed annuities are too high.—A. and N.Z.