The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, JUNE 24, 1931. MR HOOVER’S OFFER.

Hokitika Guardian, 24 June 1931, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, JUNE 24, 1931. MR HOOVER’S OFFER.

The offer of the President of tho United 'States to declare a “war debts holiday” for one year provided that the allied nations are prepared to make the necessary adjustments with Germany, has caused great interest among the various nations affected. The principal object of the' offer of the United States would appear to be to give temporary relief to Germany from the reparations payments,, which, in view of the very depressed state of the finances of that country, have become a serious burden. Under the Young Plan of reparations payments as approved at the conference at The Hague, Germany has to make 37 annual payments to the Allies of 2,050,800,000 marks. This scale of payments would cease in 1966, when an additional 22 annuities would be paid to 1988 equal to the Allied payments on war debts to the United States during this period. Of the first 37 annuities, 660,000,000 marks represent unconditional payments without right of postponement, to be obtained by a tax on the Reich railroads, while the conditional payments are to be made from the budgets of the Reich. Of the unconditional payments France very naturally, since much of her country was laid to waste during the war, receives the lion’s share, amounting to about 500.009.000 marks. The rest of the unconditional payments is, very roughly, distributed in the proportion of 96,000,000 marks (about £4.500,00) to Great Britain; 55,009,000 marks to the British Empire; 6,600,000 marks to Japan; 6.000.000 marks to Jugoslavia, and 2,400,000 marks to Portugal. Other Allied nations participate in the reparations disbursements through payments from conditional funds with the exception of Belgium, which

receives rehabilitation moneys under another agreement. The iirst step in the direction of giving an indebted country some relief in respect of the discharge of its war debt obligations was that recently made by the British Government in favour of Australia. The nation which is most likely to regard Mr Hoover’s proposal without enthusiasm is France.- Of the European nations France has, to the present, suffered least from the world depression. The huge reparations payments from Germany have enabled the French Government to scarry out a great-part of its rehabilitation schemes, and ha,s brought the country a large fund of -ready money to provide employment. The war debts of France to Great Britain, her principal creditor, were, moreover, funded on terms most advantageous to the Republic. It is safe to say that the plan suggested by Mr Hoover on behalf of Ms Government is likely to receive a favourable reception among the Allied nations. Great Britain particularly would stand to receive relief from a very heavy burden of war debt payments at a time when it would be most welcome, and there can be little doubt that Germany will eagerly embrace the proposals.. That the economic position of that country is despora.te piny be judged by the recent financial decree affecting over'y German, employed or unemployed, by which means alone the Government can envisage the possibility of balancing the budget. Hints that Germany might even be compelled to declare a moratorium cannot be disregarded. They emphasise the view that, even if some sacrifices by the Allies were entailed through theacceptance of the proposal of the United States, worse consequences might thereby he avoided.