The Archive · 1938

Precedent for Default

London, May 31 Sir Frederick Leith-Ross has decided to leave Berlin for London as a result of the virtual rupture of negotiations on the resumption of service on Austria's debts, City quarters claim today Britain had requested the Reich to assume responsibility for Austria's debts after the Anschluss," Berlin refused on the same argument that Britain had not recognized Transvaal's debt at the time that African region came within the scope of the Empire.

The Reich is understood ready to discuss the resumption of partial servicing of loans given Austria before March, 13, but this sreement is forthcoming only on condition that Britain increases her purchases of German goods and that the rate of interest be reduced Sir Frederick is said to have declared he could not pursue parleys on such a basis and decided therefore

Text read from the printed page and cleaned; old type leaves the occasional error.

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