WAR DEBTS.

Taranaki Daily News, 19 January 1923, Page 5

WAR DEBTS.

BRITAIN AND AMERICA. AGREEMENT DELAYED.. DIFFICULTY OVER INTEREST By Telegraph.—Press Assn.—Copyright. Received Jan. 18, 8.1,5 p.m. New York, Jan. 17. The Washington correspondent of the New York Times says the British and American debt commissions are still ai odds over the interest charge. There will be another meeting to-morrow, and if no progress is made it is understood the Brit ish mission will ask for a temporary suspension of negotiations. Several members are returning to England for consultation with the Government.

It is reported that the British continue to asked for a three per cent, rate, pointing out that the Bank of England is now lending money at that interest, but the Americans declare such a low rate could not go through Congress. It appears 34 per cent, is the lowest possible rate Congress is likely to accept. It is also reported that the British will ask for a 60-year funding period, while, the American sentiment is for a 50-year period. The situation is complicated by the fact that the present Congress dissolves on March 4, and unless President Harding calls a special session of the new Congress this body will not meet according to law until December. Thus, if the negotiations are broken off, the debt settlement may be delayed until next year.—Aus.N.Z. Cable Assn. SYSTEM OF PAYMENT. THE USE OF BONDS. Received Jan. 18, 8.15 p.m. >. Washington, Jan. 17. It is stated definitely that the British contemplate the immediate commencement of the repayment of the debt as soon as an agreemnt has been reached and ratified. Payments will probably be by means of bonds, deposited in the United States Treasury, part of which will be redeemable yearly, in addition to interest. The American Government may hold the bonds in the Treasury or place them on the American market —Aus.-N.Z. Cable Assn.