GERMAN INTEREST SCHEME

Timaru Herald, Volume CXXXVII, Issue 19373, 23 December 1932, Page 9

GERMAN INTEREST SCHEME

HEAVY BURDEN OF DEBTS

FRESH NEGOTIATIONS ADVOCATED United Press Association—By Electric Telegraph—Copyright (Received December 22. 10.30 p.m.) BERLIN, December 22. Germany is consuming her capital and continually getting poorer, said Herr Hungenberg, German Nationalist, in propounding a new scheme for the reduction of interest on foreign and private debts from five to one and ahalf per cent. He suggested that negotiations thereon should begin at the expiration of the Standstill Agreement in February, when the fate of the £300,000,000 sterling short-term credits were involved. “Creditors must choose between getting their capital back and receiving interest,” he said. “If mutual agreement is impossible Germany might be forced to act alone. In addition to a reduction of interest amortisation payments should not exceed the value of our export surplus. We could dump goods but we want to avoid that in the interests of our creditors and ourselves.”