GREEK FINANCE

Hokitika Guardian, 24 May 1932, Page 5

GREEK FINANCE

PRECARIOUS STATE

LOAN PAYMENTS SUSPENDED

(British Official Wireless.)

RUGBY, May 21

A reply has been received by the British'■'•'Government to" the recent protest of the British Representative lti Greece, ‘supporting a'' formal protest 1 made by'‘the International Financial Commission at Athens against the'’failure of the Greek Government to carry out 1© . \ obligations hr 'retard to ’its foreign' loans'. ' 1

The British Government is informed that the present financial situation of Greece has compelled the Greek Government to suspend temporarily the transfer into foreign currency of sums for the payment of the coupons of the Greek loans maturing on May Ist, as, if such payments were continued, the complete co'i'apse of the Greek drachma would follow, since the only remedy for the ensuing budget deficit would be a fresh issue of paper money. The Greek Government hop e that a tempdrary suspension df payments will enable them to await the results of the Lnusarine Conference and to reach

agreements with their creditors, They state that the creditors would benefit, as Greece would be able to make them fair, and, as far as possible, satisfactory proposals. The Greek Government arc prepared to .submit the 'whole question to arbitration, (which might include the capacity of Greece to pay.

Similar replies, it is understood, have been received by the French and Italian Governments.

STATE EMPLOYEES STRIKE

TANTAMOUNT TO REVOLUTION

LONDON, May 22

The “Daily Express” Athens correspondent reports that drastic cuts have been made in the pay of the civil servants, which have caused a strike o f the State employees.

M. Venizelos, the Premier, decided to answer this challenge with a counter threat describing the general strike in the nation’s hour of crisis as tantamount to a revolution. He announced that all of the strikers would be tried by court-martial. This bold order led to a series of clashes of the State servants with the military.

Mr Venizelos has resigned and the strikers have decided to return to work,

GREEK GOV&kNMicNT RESIGNS

ATHENS, May 21

The Greek Government resigned owing to 51, Veuizelos deciding, in view of tllie Opposition's allegations that he was clinging to office and aiming at a dictatorship, to give his opponents an opportunity of dealing with the financial difficulties.