DEBT SETTLEMENT.

Hokitika Guardian, 15 July 1926, Page 2

DEBT SETTLEMENT.

STATEMENT IN COMMONS. [Australian & N.Z. Cable Association.] LONDON, July 13. In the House of Commons, Mr AY. Churchill, elaborating the result of the discussions with M. Caillaux on the French debt, stated that a complete settlement covering not only tho French War Debt, but virtually all of the outstanding accounts between France and Great Britain had been signed. There had remained several • points outstanding of some importance upon the settlement, whereof the previous partial agreement depended. Of these the principal was the .so-call-ed Safeguarding Clause, which France sought to insert in the agreement making the annuities depend on annuities from Germany. It was finally agreed that the latters should he charged between flic two Governments, making it clear in the event of a complete or serious failure of German payments. which there at present was no reason to apprehend, that France will he entitled to ask for a reconsideration of the terms. Britain, therefore, was committed to reconsideration in such an eventuality. Nevertheless it was open for Britain to raise any counter argument, such as a simultaneous injury we inigh suffer in the event of failure, during the continuance of obligations to America, and it would he open to both sides to argue the ease on the merits. The letters also to provide a transfer clause providing a delay with certain limits, of payments on account of exchange difficulties. There is also a clause providing in. the event of British receipts from reparations exceeding what 'she should pay America, the surplus should he divided between the various Allied debtors. On the question of a moratorium they agreed upon a scale tor the years up to and including 1930, identical with that of August last. The sums deducted from earlier years will he transferred and are to lie repaid at a lower interest rate than the later years’ agreo- ' ment. On this basis, the actual annuities will be for the present year £4,000,000, thereafter £0.000,000, £8,000,000, £10,000.000, until £12.500.000 is reached in 1930. Annuities of £12.500,000 will continue from 1930 to 1950. and will rise from Hie last thirty one years to the £14,000.000 originally proposed last . August. France will make an additional pay- ' ment of £2.000.000 for 1925, but the year having passed they have not 1 sought to alter the remaining steps 1 1 the ladder as originally constituted.

PRESS COMMENT. LONDON, July 14. ; The naoers in their editorials, generally regard the Anglo-French debt agreement as cleaning the slate onterms that arc the best attainable under the prevailing difficult circumstances. The “Morning Post” .states:—“The French press comment is universally favourable. Not for many months has such sincere appreciation of any act by the British Government appeared in the Paris newspapers.” It states the paper “Ip Matin” quotes a British expert’s calculation that, under the present values, tho new arrangement amounts to a reduction of sixty per cent., upon tho capital values of the French debt to Britain, which hitherto has been accepted as £653,000,000. AMERICAN INTEREST. NEW YORK, July 13. The news of the Anglo-French Debt settlement was received in America with great interest, and there is con siderable divergence of feeling lion Mr Mellon (U.S.A. Treasurer) ' commenting on the settlement, point-, ed out that the Franco-Ainerican seltleineu was no longer a question for anyone but the U.S.A. Senate to settle. It was common knowledge, bo said, that there is a strong bloc in the U.S. Senate which considered that the terms of the Freneh-American settlement are too lenient and there was considerable fear that it would not lie passed, although he now thought that Britain’s example would have a salutory effect. SETTLEMENT TERMS. LONDON, July 13. The franc’s value improved here following on the debt settlement. The French franc closed at 189-1' to £1 and the Belgian franc at 3IP} to £l.