FRANCE REPLIES TO OFFER

Taranaki Daily News, 25 June 1931, Page 5

FRANCE REPLIES TO OFFER

MUST UPHOLD YOUNG PLAN annuities must be paid WILLING TO ACCEPT MARKS MEANS TO MEET DEFICIT By Telegraph—Press Assn.—Copyright. Rec. 10.30 p.m. Paris, June '24. The draft of the Minister’s counter proposals to President Hoover, it is understood, reaffirms the necessity for the maintenance of the Young plan. It insists on the payment of Germany s unconditional annuity but expresses willingness to accept it in marks, payment being made to the Bank of International Settlements, and being used for the relief of countries of Central Europe which wore severely stricken. The shortage in the Budget cannot be made up by additional taxation, which has reached the limit. The Gov eminent will therefore be obliged to postpone the plan for national develop nient. Le Journal declares that President Hoover's proposal will involve France, Belgium, Italy and Britain in Budget deficits, leaving Germany the only country with a surplus and strengthening her position to compete in the world markets. The newspaper asks: "Is this what America wants?” L’Etoile Beige (Brussels) declares that Germany lias shown considerable bad faith and has even used blackmail. The Americans are business people striving to save the capital they im pudently invested in German enterprises. President Hoovers plar will only postpone the reparations problem, though it may point the way to a final solution, based on world co-operation. CREDIT FOR GERMANY PROPOSED. CONSIDERATION IN AMERICA. Rec. 10.30 p.m. Washington, June 23 While President Hoover devoted the day to energetic efforts to speed the acceptance of his reparations programme the Federal Reserve Board was credited with considering granting a substantial short-term loan to the German Reich bank through the New ibrk reserve bank. The administration appears ,to be unwilling to heed the Democratic appeals for an extra Congressional session, but it se&ms probable that if the suspension of foreign payments is to be approved before the next payment day (December 15) Congress will have to be assembled some weeks prior to that date. Senator Harrison (Democrat), has proposed a ‘‘political armistice in order that partisan issues, may be abandoned during the Congressional discussion of the Hoover programme. Germany to-day formally accepted President Hoover’s proposal. The Hoover proposal might be the one factor that would stabilise business and start it on the road back to recovery, Sir Henry Thornton told a special Parliamentary committee dealing with the Canadian National Railways to-day. "Personally,” he said, “I think it is.’’