5. If at any time while the payments under Article 2 of this 
Agreement are continuing 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 Portugal against the payments next due 
by Portugal under Article 2 of this Agreement with such proportion 
of that excess as the payments effectively made by Portugal under 
Article 2 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 pavments shall each year give rise to a credit 
to Portugal 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 Portugal, up to a 
similar proportion of such deficit, within the limit of the total 
amount of the credits already allowed to Portugal under this Article. 
6. The accounts relating to the War Debt of Portugal to Great 
Britain shall he finally closed and Great Britain shall be entitled 
to retain any sums credited or to be credited to Portugal 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 or supplies to which they relate, including all services or 
supplies rendered by either of the Contracting Parties to the other 
in connection with the War. 
7. Upon the execution of this Agreement, the payment of the 
sum due for 1926 and the delivery to Great Britain of the bonds 
to be delivered under Article 8 of this Agreement, duly executed, 
Great Britain will cancel and return to Portugal the Portuguese 
Treasury Bills held by Great Britain. 
8. The Portuguese Government shall have the right to 
discharge all outstanding payments due under this Agreement by 
the payment in sterling at the Bank of England on or before the 
21st December. 1927. of the sum of £5.500.000. 
Signed in duplicate at T.ondon on the thirty-first day of 
December, 1926. 
On behalf of Great Britain : On behalf of Portugal : 
WinsToN S CHURCHILL. Joio J. SINEL DE CORDES. 
Wt. 20774/1091 128%0 1/27 F.O.P. [12620]