19 AUGUST 1938, Page 22

GERMAN DEBT PAYMENT

[To the Editor of THE SPECTATOR] SIR,—I take the liberty of traversing your reply to question 2 on page 14 of your issue of July 1st, 1938. Germany has defaulted absolutely on her Central Bank of Agriculture American Dollar Loan—no interest has been paid since 1934. She has also partially defaulted on one of her 7 per cent. Loans (U.S.A. dollar) (1924, I think). In this case she created a company whose sole function was to buy up the coupons of the bonds at 5 t} per cent. of their face value.

Whether she has given preferential treatment to Great Britain I am not certain, but I have reason to think that the sterling portion of the Loan has been dealt with in the same way as the dollar portion.—Yours faithfully, A SUFFERER. Singapore.