As Anglo-Italian relations over the war in Spain last week took a slight turn for the better (see above), so did financial relations between Britain and Germany. The Chancellor of the Exchequer, Sir John Simon was able to inform the House of Commons that an Anglo-German agreement had been reached providing for continuance of the debt service on Austrian loans, repudiated by the Reich after Anschluss.

Germany, on her part, announced the Chancellor, agreed to take responsibility for Austria's Government debts owed to Britain. In return, Britain slashed the interest payments on the...

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