German Debts Whilst these grim events were happening in Germany,
the German representatives who have been discussing the debts' question were proceeding with their negotiations, with the result that Mr. Chamberlain has been able to announce a satisfactory.issue. The German Government agree to provide sterling funds at the Bank of England for the full payment of interest on the Young and Dawes Loans to British holders for the next six months ; and in regard to other loans. (in which the main principle at stake is not involved) the German offer of May 29th is made applicable, with most favoured nation terms in regard to future agreements. Thus the necessity of using the powers of the Debts Clearing Office and the consequent danger of an economic war harmful to both countries. have been avoided. Though the agreement only provides for the next six months, a breathing space is afforded in which to come to a more lasting arrangement. * * * *
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