instalments falling due on or after the 15th September, 1928, as 
exceeds the sum of one million pounds (£1,000,000) to any sub- 
sequent 15th March or 15th September, not more than two years 
distant from its due date, but only on condition that in case Italy 
shall at any time exercise this option as to the payment of any 
instalment, the instalments falling due in the second succeeding 
year cannot be postponed at all unless and until the instalments 
due two years and one year previous thereto shall actually have 
been paid in full. All such postponed payments shall bear 
interest at the rate of 5 per cent. per annum, payable half-vearly. 
5. The accounts relating to the war debt of Italy to Great 
Britain, including the accounts in connection with the Wheat 
Executive and War Risks Insurance schemes, shall be finally 
closed, and the British Treasury shall be entitled to retain any 
sums credited or to be credited to Italy in respect of such 
accounts. Save as provided in this Agreement, the contracting 
parties and their agents reciprocally renounce all claims or 
counter-claims against the other contracting party or their agents 
in respect of the above-mentioned accounts or the services and 
supplies to which they relate. 
Great Britain likewise renounces all claims outstanding against 
[taly in respect of the hire of ex-enemv shipping. 
6. If at any time it appears that the aggregate payments 
effectively received by Great Britain under Allied War Debt 
Funding Agreements and on account of reparations or of 
Liberation bonds exceed the aggregate payments effectively, 
made by Great Britain to the Government of the United States 
of America in respect of war debts, an account shall be drawn 
up by the British Treasury, interest at 5 per cent. being allowed 
on both sides of the account; and if that account shows that 
the receipts exceed the payments, Great Britain will credit Italy 
against the payments next due by Italy under Article 1 of this 
Agreement with such proportion of that excess as the payments 
effectively made by Italy under Article 1 of this Agreement bear 
to the aggregate sums effectively received by Great Britain under 
all Allied War Debt Funding Agreements. Thereafter, a similar 
account will be drawn up by the British Treasury each year, and 
any further excess of the receipts over the payments shall each 
year give rise to a credit to Italy of a proportion of such excess 
calculated in the manner indicated above. On the other hand, 
any deficit shall be made good by an increase in the payments 
next due by Italy up to a similar proportion of such deficit within 
the limit of the total amount of the credits already allowed to 
Italy under this Article. 
For the purpose of this Article any capital sums which may 
hereafter be realised by (4reat Britain in respect of Reparations or 
of Liberation Bonds will be taken at their annual value, taking 
weeount of amortisation.