DEBT MORATORIUM.

Waikato Times, Volume 110, Issue 18405, 12 August 1931, Page 7

DEBT MORATORIUM.

SUSPENDED PAYMENTS, EXTENSION OVER TEN YEARS. TO BEAR INTEREST OF 3 PER CENT United Press Assn.—Elec. Tel. Copyright (Received August 12, 9.45 a.m.) WASHINGTON, August 11. The State Department said to-day that under an agreement reached in London to make the Hoover debt moratorium effective, ail suspended payments will become unconditional obligations of the debtor Governments, to be repaid over 10 years, beginning on July 1 1933, with Interest at 3 per cent from that date. Repayments will be made in 10 equal Instalments, each divided into 12 monthly payments, Including principal and interest. Government Gratified. The statement said: “ Our Government is gratified at the progress which has been made in giving practical effect to the suspension programme suggested by the President, Mg Hoover on June 20." EXPERTS IN AGREEMENT. APPROVAL BY GOVERNMENTS, PAYMENTS IN KIND. (Official Wireless.) (Received August 12, 12.30 p.m.) RUGBY, August 11. The conference of financial experts appointed by Belgium, France, Britain, Germany, Italy, and Japan to consider the detailed measures required to give effect to Mr Hoover's proposal has Issued a communique stating that a complete agreement has been reached on the detailed measures required to give effect to the proposal in the case of payments by Germany under the Hague agreement. The conference's recommendations have been approved by the Government's represented, also by the Governments of Australia, Canada, Czecho-Slovakla, Greece, India, New Zealand, Portugal, Poland, Rumania and South Africa. The conference recommends that the payments of both reparations and inter-allled debts, suspended during the Hoover year, should be repaid by ten equal annuities from July 1, 1933. to include both principal and interest at a rate not exceeding 3 per cent. It makes this recommendation on the assumption that the system will be acceptable to the United States Government as regards the debts due to them.

The repayment annuities will be absolute obligations, involving no option of postponement. The German Government pointed out. that in accepting the proposal, they did not intend to express any opinion as to Germany's future capacity of payment. With regard to (Jellveries in kind the conference decided that any arrangements designed to permit the continuation of deliveries in kind contracts must involve no charge on the German Budget during the year, aud no injury to Germany economy.