DEBT SETTLEMENT.

Hokitika Guardian, 14 July 1926, Page 2

DEBT SETTLEMENT.

£Australiun & N.Z. Cable Association.} LONDON, July 13. There is general satisfaction that an Anglo-French debt agreement has been reached, thus ending what the “Daily News” describes as “wearisome and rather squalid negotiations; “but it adds:—“No enthusiasm may be expected regarding the terms.” Air .Churchill's hesitating “Yes” when asked if he were satisfied, corresponds with Al. Caillaux's qualified expression. It is clear that the agreement will represent a sacrifice by the British taxpayer in the interests of a real peace and financial stability abroad. Aloreover as the ‘“Daily Telegraph’s” diplomatic correspondent points out that certain factors have materially aided Al. Caillaux. Firstly, he is the only French Finance Alinister whose competence Tia.s impressed the British Alinisters, and it was felt that were he to fail a second time, the -result might he chaos. Secondly, (British diplomacy would probably view with anxiety, Al. Briand’s replacement by a Nationalist French Foreign Alinister on the eve of Germany’s admission to the League of Nations. Similarly, a French Socialist Cabinet might have caused tlie British financial circles to lose such confidence as still remained in the salvation of the franc. The correspondent says he learns that by signing the agreement yesterday AT. Caillaux saved France three hundred thousand sterling in stamp duty on the further renewal of war i debt bonds held by the British Trca-

M. Caillaux was the chief guest at a banquet at Derby House at which leading bankers wore present.

The “Daily Express” states: —“Britain has granted a partial moratorium. The first French payment will he four millions sterling, which AT. Perot (cx-A(inister) promised for 192627. The second payment will bo five million for 1927-28. The yearly pay incuts will then increase to six, seven, eight and to 12} million sterling. There is a Safeguarding Clause, under which payment from France to Britain is partly dependent on Germany’s payments to Franco under tho Dawes’ scheme.

There is also a Transfer Clause, to he operative only if the franc’s rate of exchange is suffering by tlie banding over of too large a sum. There is another clause under which France is allowed to buy hack 53} million sterling in gold that was consigned to the British Treasury by France as a guarantee for war loans. CAILLAUX’S COMMENT! LONDON, July 13. Al. Caillaux, in an interview, declared lie was as pleased with the result as could be expected when one ■signed something not very agreeable. He hoped tlie agreement would favourably react on the franc. BELGIUAI’S MOV®.' LONDON, July 13.

“The Times’” Brussels correspondent states: “Owing to the collapse of tlie franc, the Belgian Government is drastically legislating, conferring on His Afajesty the King, for a period of six months, the necessary powers to decide questions relating to the note circulation and loans. The supplies and manufacture of bread will 'be controlled, and pure white bread will be discontinued. Thereby fifty thousand francs daily will be saved.

The wheat imports, telegraphs, telephones, and railways are being transformed .into a. national company, issuing .three million francs preference shares of live hundred francs each, the Government keeping the ordinary shares.