DAWES LOAN

Wairarapa Daily Times, 19 July 1934, Page 5

DAWES LOAN

DISPUTE WITH GERMANY. BERLIN, Tuesday. A breach has occurred between the Dawes Loan Trustees and the German Government, which announces that it intends disposing, as it pleases, of revenues amounting to 200,000,000 marks monthly pledged by 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 to tho Reich. The trustees cancelled the standing order because the Government paid an equivalent amount into the 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,” adding that by withholding essential revenues they had endangered vital Government tasks. “To forestall these dangers, and also because the spiteful exercise of treaty rights is unjustifiable, the Government has taken measures to secure the revenues for proper services. The amount the trustees blocked is 50 times the amount required to service the loan, which payment into a blocked account guarantees absolutely.”