DEBT PAYMENTS

Hokitika Guardian, 6 July 1931, Page 6

DEBT PAYMENTS

AN AGREEMENT. BY FRANCE AND U.S.A. (United Press Association,—By Electrw Telegraph.—Copyright,! LONDON, July 3. The -'Daily Telegraph” says: It is understood that France has suggested that, in the event of a conference being held, Paris should be the venue for jt, and not London. The “Daily Express" says it learns that a provisional agreement or some points lias been reached, France being willing that the repayment should be spread over a long term of years, and having also waived her claim that credit should be also extended to the East European countries, in which she is interested. An assurance will be given to France that she will never have to make good any of the debt payments whereof Germany is relieved, LONDON, July 3.

The “Daily Mail's” Paris correspondent announces that a complete Franco-American agreement is now in sight regarding the war debt, moratorium. WASHINGTON, July 3. The Acting-Secretary of State, Mr Castle, said that he did not consider •that the accord reached in Paris was a full acceptance, in principle, of President Hoover’s moratorium proposal. He interpreted the report as indicating that some of the points of difference have been eliminated. No formal Government statement has been issued. PARIS, July 3. The French-American negotiations regarding war debts have resulted m an agreement being reached. A communique was received after midnight, which stated that Mr Mellon (United States Treasurer) had confirmed the United States’ acceptance of the unconditional annuity under the Young Plan. Other Important divergencies’, views have been smoothed out. Those remaining are of lesser consequence, and are being submitted to the Ministers to-day.

FRANCE'S LIABILITY. A COMPROMISE REACHED. LONDON, July 4. Mr Snowden has made a cryptic statement in relation to a twenty-five millions guarantee fund which France, under the Young Plan, would be required to deposit with the Bank of International Settlements in the event of Germany declaring a moratorium. France argued that if she did not retain her unconditional annuity from •Germany under the Hoover moratorium scheme, she should not be required to provide this twenty-five millions deposit in the event of a subsequent moratorium under the Young Plan. •France, seeking a way out of the deadlock, suggested, tentatively, that Britain should agree, beforehand, to forego her share of this deposit, thus leading the way for the other powers concerned, and relieving France of the necessity to make such a deposit. Mr Snowden said that he declined to commit Britain to any further commitments.

It is understood that, under the agreement reached last night, France and the United States have recognised that the question of guarantee shall not arise during the year's Hoover moratorium. If Germany should, thereafter, declare a moratorium regarding the conditional annuities, the unconditional annuity to France would offset any obligation on her part to pay a deposit. On . the other hand, if Germany did not pay even the unconditional annuity, then France, by an arrangement with the other parties to the Young Plan, would be absolved from the deposit provision.

LONDON CONFERENCE. UNACCEPTABLE TO FRANCE. RUGBY, July 3. An announcement was issued" in London, which after expressing the desire of the British Government that the Paris discussions should prove successful, stated : “Should no early solution be found, the British Government expressed their willingness, in order that an agreement might be reached, with the. minimum delay to hold a meeting of representatives or the Powers, chiefly concerned, at an early date.” It is understood that France declined the British invitation to a conference on the Hoover plan, at London, during the week-end. - 1 The United States was not opposed to the suggestion. It was later stated at Paris, that although the British suggestion strongly commended itself to the French Government, Parliamentary duties would make it impossible for the French Ministers to visit London during the present week-end. The proposal thus remains in abeyance and it is hoped in any case that such progress will be made m resumed Franco-American discussion as will make further consideration of the British suggestion unnecessary. \ French Cabinet meeting earlier today considered further the American aide-memoire.