SERVICE OF DAWES LOAN

Taranaki Daily News, 19 July 1934, Page 5

SERVICE OF DAWES LOAN

DISAGREEMENT IN GERMANY TRUSTEES AND GOVERNMENT USE OF PLEDGED MONIES POWER TAKEN BY STATE By Telegraph—Press Assn.—Copyright. Berlin, July 17. A breach has occurred between the Dawes Loan trustees and the German Government, which announces that it intends to dispose as it pleases of revenues amounting to 200,000,000 marks monthly pledged by the treaty to the trustees. The practice has been for the trustees to retain 4,220,000 marks monthly to service the loan, after which the Reichsbank, acting on a standing order by the trustees, paid the balance into the Reich. The trustees cancelled the standing order because the Government paid an equivalent amount into a blocked account instead of servicing the loan with it. A Government communique describes the trustees’ action as “petty malice or an attempt to exercise pressure.” It adds: “The withholding of essential revenues endangers vital Government tasks. To forestall these dangers, also because of a spiteful exercise of treaty, rights which is 'unjustifiable, the Government has taken measures to secure the revenues for proper services. The amount the trustees blocked is 50-fold the amount required to service the loan, which payment into a blocked account guarantees absolutely.”