NE ¢g. FEB ov ~ ABIL [TALIAN WAR DEBT Agreement for the Settlement OF THE War Debt of Italy Great Britain Presented to Parliament by Command of His Majesty. .l Coby ens. oy ery on = TnoN PRINTED & PUBLISHED Pv UIR:WAJFRTY’S STATIONERY OFFICE. ['0 be purchased directly from H.M. STATIONERY OFFICE at the following addresses: Adastral House, Kingsway, London, W.C.2; 28, Abingdon Street, London, S.W.1; York Street, Manchester; 1, St. Andrew’s Crescent, Cardiff; of 120, George Street, Edinburgh; or through any Bookseller. 1926 Price 14. net. Cmd. 2580. AGREEMENT made the twenty-seventh day of January, 1926, between the Kingdom of Italy (hereinafter called Italy) and the United Kingdom of Great Britain and Northern Ireland (hereinafter called Great Britain). WHEREAS Great Britain holds Italian Sterling Treasury Bills to the value of £610,840,000, representing the war debt of Italy to Great Britain. AND WHEREAS Italy and Great Britain desire to arrive at a friendly settlement of this debt. within the capacity of Ttalv. Now, THEREFORE, the Rt. Hon. Winston Leonard Spencer Churchill, Chancellor of the Exchequer of Great Britain, and the Count Giuseppe Volpi di Misurata, Finance Minister of Italy, after having taken into account all relevant considerations, duly authorised thereunto by their respective Governments subject to such ratification as mav be required. have acreed as follows -o 1. Italy agrees to pay, and Great Britain to accept, in satis- faction of the aforesaid war debt, the following Annuities :— In respect of the current financial year £2,000,000 In respect of the next two financial years £4,000,000 a year In respect of the next four financial years £4,250,000 a year In respect of succeeding financial years until 1986-87 ... wn Fr ... £4,500,000 a year In respect of the financial year 1987-88 £2 250,000 The above payments will be made in sterling at the Bank of England, London, on the 15th March, 1926, and therafter in qual half-yearly instalments on the 15th September and 15th March of each year, so that the last pavment will be made on the 15th September. 1987 2. Italy will issue and deliver to the British Treasury on or before the 20th February, 1926, a bond substantially in the form set out in the Annex to this agreement in respect of each of the pavinents provided for in article 1 of this acreement. 3. The payments due under all bonds issued in accordance with this agreement shall be made without deduction for, and shall be exempt from any and all taxes and other public dues, present or future, imposed by or under authority of Italy or any political wr local taxing authority within Italy. 4. Ttaly, at its option, upon not less than ninety days’ notice bo Great Britain. may postpone such part of any of the half-vearly 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. 7. The £22,200,000 of Gold belonging to Italy, which was deposited under the Agreements of 1915 against the Italian war debt, will be retained by Great Britain as a non-interest-bearing deposit and will be released to Italy, as to the sum of £1,000,000, in eight equal instalments on the 15th September and 15th March of each of the four years commencing 15th September, 1928, and terminating the 15th March, 1932, and, as to the balance, in equal half-yearly instalments commencing the 15th September, 1982, and terminating the 15th September, 1987, provided always that all the annuities due under Article 1 of this Agreement have been integrally paid to date. 8. Upon the execution of this Agreement and the delivery to Great Britain of the bonds of Italy to be issued hereunder, duly executed, the British Treasury will cancel and surrender to Italy the Italian Treasury bills held by Great Britain. Signed in duplicate at London on the twenty-seventh day of January, 1926. . ] For the United Kingdom of Wor the Kingdom of Italy : Great Britain and Ireland : GIUSEPPE VOLPI DI MISURATA, Winston S. CHURCHILL, Minister of Finance. Chancellor of the Exchequer. ANNEX. Dated ForM oF BonD. , 19026. Maturing Tae Government of the Kingdom of Italy for value received promises to pay to the Government of His Britannic Majesty, or order, on the 15th March/15th September, 19 , the sum of pounds sterling at the Bank of England, London. The payment due under this bond shall be exempt from all Italian taxation, present or future. This bond is issued by the Government of the Kingdom of Italy pursuant to the agreement of the twenty-seventh day of January, 1926, for the funding of the Italian War Debt to Great Britain. 56293) Wt. 23717—G126 1950 2/96 H. St. (3. IR 2 5 2 3 Hive f— 3 2 P J = © NY JJ ii \ 0 a1 > ZT AS = — py A +) EEE > rn — aD wt pl} Z 7d % ~ + =, a nents falling due on or after the 15th September, 1928, as is the sum of one million pounds (£1,000,000) to any sub- “at 15th March or 15th September, not more than two years > t from its due date, but only on condition that in case Ttaly at any time exercise this option as to the payment of any ment, the instalments falling due in the second succeeding “annot be postponed at all unless and until the instalments vo years and one year previous thereto shall actually have paid in full. All such postponed payments shall bear 3t at the rate of 5 per cent. per annum, pavable half-vearlv. r [he accounts relating to the war debt of Italy to Great 1, including the accounts in connection with the Wheat ttive and War Risks Insurance schemes, shall be finally , and the British Treasury shall be entitled to retain any credited or to be credited to Italy in respect of such ats. Save as provided in this Agreement, the contracting s and their agents reciprocally renounce all claims or 'r-claims against the other contracting party or their agents pect of the above-mentioned accounts or the services and tes to which they relate. at Britain likewise renounces all claims outstanding against ‘nL respect of the hire of ex-enemy shipping. If at any time it appears that the aggregate payments vely received by Great Britain under Allied War Debt ng Agreements and on account of reparations or of ition bonds exceed the aggregate payments effectively, ’y Great Britain to the Government of the United States erica in respect of war debts, an account shall be drawn the British Treasury, interest at 5 per cent. being allowed th sides of the account; and if that account shows that celpts exceed the payments, Great Britain will credit Italy 3t the payments next due by Italy under Article 1 of this ment with such proportion of that excess as the payments vely made by Italy under Article 1 of this Agreement bear aggregate sums effectively received by Great Britain under lied War Debt Funding Agreements. Thereafter, a similar ht will be drawn up by the British Treasury each year, and urther excess of the receipts over the payments shall each jIve rise to a credit to Ttaly of a proportion of such excess ated in the manner indicated above. On the other hand. eficit shall be made good by an increase in the payments lue by Italy up to a similar proportion of such deficit within mit of the total amount of the credits alreadv allowed to under this Article. the purpose of this Article any capital sums which may fter be realised by (sreat Britain in respect of Reparations or beration Bonds will be taken at their annual value. taking nt of amortisation ay