WAR DEBT SUSPENSION

Wanganui Chronicle, Volume 74, Issue 190, 13 August 1931, Page 7

WAR DEBT SUSPENSION

A COMPLETE AGREEMENT CONFERENCE OF EXPERTS [British Official Wireless.] RUGBY, Aug. 11. After a conference, the experts ap pointed by Belgium, France, Britain, Germany, Italy, and Japan to consider the detailed measures required to give effect to President Hoover’s proposal issued a communique stating that a complete agreement had been reached. In the case of payments by Germany under The Hague agreement the con ferencc’s recommendations have been approved by the Governments repr* - sen ted, also by the Governments of Australia, Canada, Czech o-Slovakia, Greece, India, New Zealand, Portuga', Poland,. Rouinania, and South Africa. The conference recommends that payments of both the reparations and inter-Allied debts suspended during the Hoover year should be repaid by ten equal annuities from July 1, 1933, to include both principal and interest a* a rate not exceeding 3 per cent. It makes this recommendation on the assumption that the system will be acceptable to the United States Govern ment as regards the debts due to them. The repayment of annuities will be absolute obligations involving no option of postponement. The German Government pointed out. in accepting the proposal, that they did not intend to express any opinion as to Germany’s future capacity for payment. It was agreed that the unconditional annuity should continued to be paid provided it was immediately lent again to the German Railway Company. With regard to delivery in kind, the conference decided that any arrangements designed to permit the continue tion of deliveries in kind contracts mu.-t involve no charge on the German Budget during the year, and no injury to Germany economy. It is stated that an agreement his been reached between the German and Belgian Governments on the marks question. The conference also agreed on recommendations as to detailed measure 6 for the suspension of inter-Allied war debts due to Britain, Italy, and France, and of payments under The Hague agreement with Czccho-Slovakia. An agreement was reached on the principle that payments due by Hungary under the Paris agreement of April. 1930, and payments by Bulgaria under The Hague agreement should be suspended during the year subject to certain adjustments. REPAYMENT TO AMERICA WASHINGTON, Aug. 11. The State Department said to-day tha f under the agreement reached in London to make the Hoover debt Moratorium effective, all suspended payments would become the unconditional obligation of the debtor Governments, to be repaid over ten years, beginning on July 1, 1933, with interest at 3 per cent, from that date. Repayments will be made in ten equal instalments, each divided into twelve monthly payments, including principal and interest. The statement said: ...... nt

‘*Our Government is gratified at progress which has been made giving practical effect to the suspension programme suggested by President Hoover ou June 20. ’ ’ GERMAN BANK RATE FIVE PER CENT. REDUCTION BERLIN, Aug. 11. The bank rate has been reduced from 15 to 10 per cent.