REPARATIONS LOAN

Sun (Auckland), Volume IV, Issue 984, 29 May 1930, Page 6

REPARATIONS LOAN

SNOWDEN ANSWERS QUERY IN PARLIAMENT NO FINALITY ON ISSUE British Official Wireless RUGBY, Tuesday. The Chancellor of the Exchequer. Mr. Philip Snowden, was questioned today in the House of Commons about the reparations loan under the Young plan In reply the Minister said the detailed conditions of the proposed issue of reparation bonds were still under discussion between the representatives of the Governments and the banks concerned and he could not yet say definitely -what the precise form of the bonds would be. However, he had made clear to the British representatives 'that he could not agree to any modification of the provisions included in the experts’ plan and that with a view to protecting the interests of the London market he would particularly object to any arrangement under which either the principal or the interest on the bonds of foreign issues would be payable at the option of the holder in sterling at par of exchange. MAY ISSUE IN LONDON Subject to this the 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, said Mr. Snowden, and he did not think it would have been reasonable or consistent with the position of London as a financial centre to refuse the issue in London, provided that it was subject to the condition that the proceeds would be paid to the British Exchequer. The money subscribed would be applied to the redemption of the national debt.