Show CREDIT PROGRAM GJ GETS OffiCIAl O Approval By Assured r Program i in inSight Sight MEXICO CITY Aug 16 AAn AP APAn AP- AP An official statement Issued today following a a. cabinet meeting said tho the Mexican government had approved approved ap ap- ap- ap proved the debt settlement r reached ched In New York last month between Montes de do O Oca a. a finance minister and Pond a committee of International Bankers erS The cabinet considered that Mexico Mex ico had obtained advantages the statement adi added d. d The agreement must bo bo be ratified by congress be before before be- be fore Coro it becomes effective however Tho The settlement provided for tor consolidation consolidation con con- of the debt of ot the Mexican government an and the Mexican national railways 8 It followed followed fol fol- fol- fol lowed the J precedent of recent Euro Euro- penn debt agreements being based bated on the tho principle of capacity to pa pay calling for reduction of at the amounts du due for tor arrears of Interest and ex ext extending extending ex- ex t tending the term erm of payment to 45 years ears PRESIDENT TELLS PLAN President Ortiz Rubio also made known knon t today day his Cl financial pr program gr in for the next fiscal Ise-at year s1 saying It Il was part of a year fIVe pl plan n l to put put th the country on a a. sound basis baMs pr provide pro pro- vide ide stabilization of ot credit and lead to reconstruction He said the government income In 1931 1131 would be no greater than thanin in 1929 1029 due to business c conditions and the removal ll of ot certain taxes and customs duties but during th the year he Intends to rush construction construe construe- tI tion m of ot public works and Irrigation projects especially to pro financial fin fin- ancial aid for small lando landowners tn in development of ot the agrarian J policy REDUCE ARMY Tho The president also said that the plan of reducing the atm army since the country Is at peace would proceed proceeds s JoT ly but steadily Referring again d b agreement agree s ment meat the president said If It the settlement were approved by congress congress con con- gress gress provision pro for or p payment should be bo Included In the next budget and that a fixed annual appropriation n should hould be made for the payments payments- meaning a a. reduction In other de department departments departments de- de in order to provide the money mone PROGRESS SOUGHT He added that progress progress In all ratIonal national activities and the prosperIty prosperIty prosperity prosper prosper- ity of business In general depended upon reconstruction of ot the nations nation's credit Compliance with our duties to tote the te ct editors both internal and ex external external ex- ex will be one of f the Uie first steps taken toward this end he lie sal ala |