REPATRIATIONS LOAN

Southland Times, Issue 21095, 29 May 1930, Page 7

REPATRIATIONS LOAN

DETAILS NOT YET FINALIZED. STATEMENT BY MR SNOWDEN. (British Official Wireless.) (Rec. 5.5 p.m.) Rugby, May 27. Answering a number of questions in the House of Commons regarding the reparations loan under the Young Plan, Mr Snowden said that detailed conditions of the proposed issue of reparation bonds were still under discussion between the representatives of the Governments and of the banks concerned, and he could not yet say definitely what the precise form of the bonds would be, but he had made it clear to the British representatives that he could not agree to any modification of the provisions included in the experts’ plan with a view to protecting the interests of the London market, and in particular that he would object to any arrangement under which either principal or interest on the bonds of foreign issues was payable at the option of the holder in sterling at par of exchange. Subject to this, said Mr Snowden, details of the bonds would have to be settled by agreement consistently with the plan. It would not have been possible to ensure the success of the loan if no issue had taken place in London, and he did not think it would have been reasonable or consistent with the position of London as a financial centre to refuse an issue in London provided that it was subject to the condition that, the proceeds would be paid to the British Exchequer. Mr Snowden added that the money subscribed would be applied to a redemption of the national debt.