This paper is in substitution of the paper with the same Command Number previously issued, which is incorrect. Ye? GREEK WAR DEBT. Agreement for the Settlement of the War Debt of Greece to Great Britain With an Exchange of Letters between the Chancellor of the Exchequer and the Greek Minister in London. Presented to Parliament by the Financial Secretary to the Treasury by Command of His Majesty. April, 1927. Sf FONDON - PRINTED AND PUBLISHED BY HIS MAGETY'S STATIONERY OFFICE. lo be purchased directly from H.M. STATIONTRY OFFICE at the following addresses: Adastral House, Kingsway. London, W.C.2; 120, George Street, Edinburgh; York Street, Manchester; 1, 8t. Andrew's Crescent, Cardiff; 15, Donegall Square West, Belfast; or through anv Rookseller. 1927 Dice 24. net Cmd. 2848 ote AGREEMENT FOR THE SETTLEMENT OF THE WAR DEBT OF GREECE WITH GREAT BRITAIN. Whereas the Government of the Greek Republic are indebted, as at the 31st March, 1927, to His Majesty's Government in Great Britain. after deduction of all claims in respect of damages caused by the British troops in Greece, for the sum of £21,441,450, represented by Greek sterling Treasury Bills held by His Majesty's Treasury: And whereas the two Governments desire to arrive at a friendly agreement for the funding of this debt on terms compatible with the economic and financial capacity of Greece; Now, therefore, the Right Honourable Winston Leonard Spencer Churchill, Chancellor of the Exchequer of Great Britain and M. Demetrius Caclamanos, Envoy Extraordinary and Minister Plenipotentiary of Greece, duly authorised thereto by their respective Governments, subject to such ratification as may be required, have agreed as follows :— 1. In view of the terms of Article 2 of the Agreement of the 10th February, 1918, relating to military supplies, and of the further provisions of Article 4 of the Agreement of the 31st August, 1925, the British Government agree to remit all claims on Greece in respect of the military material supplied under the Agreement of the 10th February, 1918. 2. In full and final settlement of the balance of the War Debt, the Greek Government agres to pay, and His Majesty's Government to accepts, the tollowing scale of payments representing a present value of approximately £6 950.000. viz. :~ For the year 1926 For the year 1927 . For the year 1998 ... For the year 1929 ... For the year 1930 ... i. ve For the years 1931 to 1935 inclusive For the years 1936 to 1987 inclusive £ 50,000 200,000 200,000 250,000 300,000 350,000 a year. 400,000 a vear The payment for the year 1926 shall be regarded as having been discharged and satisfied by the payments made by Greece since the 1st January, 1926; the payments for sub sequent years shall be made in sterling at the Bank of England, London, in equal half-yearly instalments on the 1st June and the 1st December of each year, so that the first payment shall be made on the 1st June, 1927, and the final payment on the Ist December. 1987. 3. On or before the 1st June, 1927, the Greek Government will issue and deliver to the British Treasury a Serial Bond substantially in the form shown in the annex to this Agree- ment in respect of each of the instalments to be paid under the provisions of Article 2 of this, Agreement. The payments due under these Bonds shall be made without deduction for, and shall be exempt from, any and all taxes and other public dues, present or future, imposed by the authority of the Greek Government or any political or local taxing Authority in Greece. Interest at the rate of 6 per cent. shall be charged on any instalment due and not paid at the due date. 4. 1f 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 Repara- tions or of Liberation Bonds exceed the aggregate payments effectively made by Great Britain to the Government of the United States of America in respueet 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, (reat Britain will credit Greece against the payments next due by Greece under Article 2 of this Agreement with such proportion of that excess as the payments effectively made by Greece 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 sach year, and any further excess of thé receipts over the payments shall each year give rise to a credit to Greece of a proportion of such excess calculated in the manner indi- cated above. On the other hand, any deficit shall be made good by an increase in the payments next due by Greece, up to a similar proportion of such deficit, within the limit of the total amount of the credits already allowed to Greece under this Article. For the purpose of this Article any capital sums which may hereafter be realised by Great Britain in respect of Reparations or of Liberatior Bonds will be taken at their annual value. taking account of amortisation. 5. Save as provided in Article 2 of the present Agreement. the British and Greek Governments mutually renounce all claims and counter-claims arising out of the various Agree- ments relating to the war debt of Greece to Great Britain 6. As from the coming into force of this Agreement, His Majesty’s- Government will waive the requirement of Article 4 of the Agreement (No. VI) of the 10th February, 1918, that the assignment by Greece of security to any external loan should be subject to their assent. 7. Upon the execution of this Agreement and the delivery ‘0 Great Britain of the bonds provided for in Article 3, duly -xecuted, His Majesty’s Government will cancel and return to Greece the Greek Treasury Bills which they at present mold representing the war debt funded by this Agreement. 8. Nothing in this Agreement shall affect the payments to be made by Greece in execution of Article 7 of the Agree- ment of the 31st August, 1925, as modified by the Agreement +f the 8th October, 1925, relating to the net debt for post- war supplies. Jigned in duplicate at London on the ninth day of April, 1927, On behalf of Great Britain : Winston 8 CHURCHILL. On behalf of Greece : I). CACLAMANOS. ANNEX. ForM or BOND. Dated 1997. Maturing 19 The Government of the Greek Republic, for value received, promises to pay to the Government of His Britannic Majesty, or order, on , 19 , the sum of sounds sterling at the Bank of England. London. Er The payment due under this bond shall be exempt from all Greek taxation, present or future. This bond is issued by the Government of the Republic of Greece pursuant to the agreement of the ninth day of April, 1927, for the settlement of the War Debt of Greece to Great Ryifain LBTTER FROM THE (CHANCELLOR OF 1HE EXCHEQUER TO THE Grex MINISTER IN JLONDON. Treasury Chambers, 9th April, 1927. YOUR EXCELLENCY, On the occasion of the signature of the Agreement for the ‘unding of the Greek War Debts to Great Britain, I desire to smphasise to Your Excellency the friendly attention with which His Majesty's Government are following the efforts of the Greek Government to restore the financial situation of Greece and to stabilise Greek currency. I am convinced that the settlement of the Greek War Debt to Great Britain will contri- bute to this end; and I wish to assure you that His Majesty's Government would view with the utmost sympathy any well considered plan of financial reconstruction framed on adequate ines, and will gladly give such a plan the fullest support that may be in their power. His Majesty’s Government are the more ready to give this support in view of, and in return for, the waiver by the Greek Government, as part of the debt funding wgreement, of their claim to the balance of the credits arising ‘rom the agreement of 10th February, 1918. Yours very faithfully, WINSTON S. CHURCHILL. His Excellency The Greek Minister. REPLY OF THE GREEK MINISTER TO THE CHANCELLOR OF THE FEXOHEQUER. No. 1012, Legation de Gréce, 51. Upper Brook Street, London, W.1. 9th April, 1927. SIR, T have the honour to acknowledge receipt of the letter under the same date, by which you have been so good as to inform me that on the occasion of the signature of the Agreement for the funding of the Greek War Debt to Great Britain, you desire to smphasise to me the friendly attention with which His Britannic Majesty’s Government are following the efforts of my Govern- ment to restore the financial situation of Greece and to stabilise Greek currency. Furthermore you express the conviction that ‘he settlement of the Greek War Debt to Great Britain will contribute to this end, and you kindly assure me that His Britannic Majesty’s Government would view with the utmost sympathy any well considered plan of financial reconstruction framed on adequate lines, and will gladly give such a plan the fullest support that may be in their power. You also state that His Britannic Majesty's Government are the more ready to give this support in view of and in return for the waiver by my Government, as part of the Debt funding Agreement, of their -laim to the balance of the credits arising from the agreement of 10th February, 1918. [ wish, in expressing to you my sincere thanks for the above sssurances given in the name of His Britannic Majesty's Government, to take account of the contents of your letter on hehalf of mv Government. I have the honour to be, With the hichest consideration, Sir. Your most obedient humble Servant, D. CACLAMANOS. To the Right Honourable, Winston CHUrcHILL, C.H., M.P., Chancellor of the Exchequer. (64776) Wt. 15049—4462 1125 10/27 H.St. (T.S. Ps. 1207) G.18 1 or He fe 2 7 i: 15 +5 g 32 ho) a1 x 1) > om N er po wn n A lt ™ YREEMENT FOR THE SETTLEMENT OF THE WAR DEBT OF GREECE WITH GREAT BRITAIN. Whereas the Government of the Greek Republic are indebted, , at the 81st March, 1927, to His Majesty's Government in reat Britain, after deduction of all claims in respect of damages used by the British troops in Greece, for the sum of 91,441,450, represented by Greek sterling Treasury Bills held y His Majesty's Treasury; And whereas the two Governments desire to arrive at a friendly greement for the funding of this debt on terms compatible with 1e economic and financial capacity of Greece; Now, therefore, the Right Honourable Winston Leonard ppencer Churchill, Chancellor of the Exchequer of Great Britain nd M. Demetrius Caclamanos, Envoy Extraordinary and [Minister Plenipotentiary of Greece, duly authorised thereto by heir respective Governments, subject to such ratification as may )e required, have agreed as follows :— 1. In view of the terms of Article 2 of the Agreement of the 10th February, 1918, relating to military supplies, and of the further provisions of Article 4 of the Agreement of the 31st August, 1925, the British Government agree to remit all claims on Greece in respect of the military material supplied under the Agreement of the 10th February, 1918. 2. In full and final settlemeni of the balance of the War Debt, the Greek Government agree to pay, and His Majesty's Government to accept, the following scale of payments representing a present value of approximately £6 950.000. vig. — For the year 1926 . For the year 1927 ... For the year 1928 ... a For the year 1929 ... _ For the year 1930 ... I. a For the years 1931 to 1935 inclusive For the vears 1936 to 1987 inclusive x 50,000 200,000 200,000 250,000 300,000 350,000 a year 400.000 a vear The payment for the year 1926 shall be regarded as having been discharged and satisfied by the payments made by Greece since the 1st January, 1926; the payments for sub sequent years shall be made in sterling at the Bank of England, London, in equal half-yearly instalments on the 1st June and the 1st December of each year, so that the first payment shall be made on the 1st June, 1927, and the final payment on the Ist December, 1987.