AMERICA ' SAYS NO

Sun (Auckland), Volume II, Issue 561, 14 January 1929, Page 9

AMERICA ' SAYS NO

Will Not Approve Big Bond Issue Proposed by Germany and Creditors WAR OBLIGATIONS (Lnited P.A. — Bqj Telegraph — Copyright) (Australian and Nig. Press Association) * T WASHINGTON, Saturday. HE State and Treasury Departments announce that the United States will not approve the flotation on the American market of the huge bond issue which Germany and the former Allies are considering to liquidate Germany’s war obligations.

At the same time, it is unofficially announced that Mr. Owen D. Young, chairman of the Board of Directors of the Radio Corporation of America, as well as of the General Electric Company, has accepted an invitation to become one of the unofficial American experts on the committee which is to undertake the revision of the Dawes plan. This announcement followed upon a conference Mr. Young had today with the President, Mr. Coolidge, and the Secretary of State, Mr. F. B. Kellogg. The Treasury Department also announces that the bonds referred to will not be accepted in payment of the French, British, Italian and Belgian war debts to the United States. It is assumed that this decision will be announced to Germany and the Allies by Mr. Young. American bankers are reported to be as unwilling as the Government to float the German bonds in this country in any such quantity as would be involved by the projected scheme for commercialising the German debt. A message from London says that, with the announcement of the names of the American members, the constitution of the Experts’ Committee on Reparation is now complete. Mr. Young’s name is regarded as a guarantee that the inquiry will be serious and businesslike. The British Foreign Office has appointed Sir Charles Addis, Director of the Bank of England, and Sir Basil Blackett, as deputy members of the committee. Sir Charles Addis was the British representative under the Dawes plan on the General Council of the German Reichsbank.

FRENCH VIEWPOINT

M. POINCARE EXPLAINS (Australian and N.Z. Press Association) PARIS, Saturday. The Chamber of Deputies passed a vote of confidence in the Premier. M. Poincare, by 325 votes to 251. In the course of a speech in defence of his policy, M. Poincare referred to the reparation negotiations. He said that if justice were not accorded Prance would return to the Dawes Plan, but if the experts reached a decision in conformity with her views they would be able to contemplate the problem of inter-allied debts from a

•new aspect. Much would be done for the peace and prosperity of the nations if the reparation problem could be settled. It was this consideration which prevented him being tempted to take a rest, bhit his Government, in order to succeed, must be assured of its existence.

GERMAN TAXATION

DRASTIC INCREASES (Australian and N*C. Press Association) Reed. 9.3 a.m. BERLIN, Sunday. Drastically increased taxation for the 1929-30 Budget is foreshadowed. Income tax, liquor excise, and death duties are to be heightened in order to cover the reparations demand. For the first normal working year of the Dawes Plan the “Vossische Zeitung” says £35,000,000 more must be squeezed out of the taxpayers. Economies in the traffic and Reichswehr administrations may reduce this to £20,000,000.