WAR DEBTS

Hokitika Guardian, 13 August 1931, Page 6

WAR DEBTS

HOOVER’S PLAN. GIVEN EFFECT. t United Press Association.—By Elect m Telegraph.—Copyright. J RUGBY,- August 11. The conference of expert appointed by Belgium, France, Britain, Germany Italy and Japan to consider detailed measures required to give effect ti. President 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 the payments by Germany under the Hague Agreement. The Conference recommendations had been approved by the Govrnmonts represented, and also by the Governments of Australia, Canad Czechoslovakia, Greece, India, New Zealand, Portugal, Poland, Roumania, and South Africa. The Conference recommends that the payments both of reparations and cf inter-Allied debts, which are bein: suspended during the year under the Hoover Plan, should be repaid by ten equal annuities as from the Ist July 1933, to include both principal and in terest at a rate not exceeding 3 pei cent. The Committee makes this recoin mendation on the assumption that tin system will be -acceptable to the Unitec States. Government as regards thi debts due to them. The repayment of the annuities i to he an absolute obligation, involvin': no option of postponement. The German Government points on that, in accepting the proposal, the; did not intend: to express any opinion as to Germany’s future capacity fo payment. It was agreed by German.' that the. unconditional annuity shoub continue to be paid, provided that i: would immediately he lent again t the German Railway Company. With regard to the deliverance r kind, the Conference decided that an arrangements designed to permit tin continuation of the deliveries in kin contracts must involve no charge o the German Budget during this year and also no injury to German economy. The Conference also agreed on re commendations as to detailed measure for the suspension of the inter-Alliei war debts due to Britain, France am Itai.v, and of the payments un er Tin Hague Agreement. With (j'-tclioste vakia an agreement has been reache on the principal that the payment due bv Hungary under the Part Agreement of April, 1930, and the pay ments due hv Bulgaria under Th< Hague Agreement, should he suspend ed during the year, subject to certaii adjustments. WASHINGTON, August 11. The State Department sa d. to-da that under the agreement reached ii London to make the Hoover D?V Moratorium effective, all suspende payments become njwonditional obli gabions of the debtor Govemmcn's t he repaid over ten years, beginning o July 1, 1933, with interest, at 3 pe cent., from that date. The repayments will be made in te' equal instalments, each divided ini twelve monthly payments, includin' principal and interest. The statement said: Our Govern •nent is gratified at the progress which hns been made) giving pract'ca! efferi to the suspension programme, sug feted by President Hoover on June 20. ’