SERB-CROAT-SLOVENE WAR DEBT. Agreement for the Settlement of the War Debt of the Serb-Croat-Slovene Kingdom to Great Britain. Presented to Parliament by the Financial Secretary to the Treasury by Command of His Majesty. November, 1927. spiel ha at cree day 80s, KR A oe} FE . ge wp i i PE ES - LONDON: PRINTED AND PUBLISHED BY HIS MAJESTY’S STATIONERY OFFICE Co be purchased directly from H.M. STATIONERY 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 any Bookseller. Cmd. 2973 Price 14. net, Agreement for the Settlement of the War Debt of the Serb-Croat-Slovene Government to His Britannic Majesty’s Government in Great Britain. I'he undersigned, duly authorised by their respective Govern- ments, have agreed as follows :— 1. In full and final settlement of the War Debt due by the Serb-Croat-Slovene Government to His Britannic Majesty's Government in Great Britain (hereinafter referred to as Great Britain), the amount of which debt as at the 1st January, 1927, has been agreed, after adjustment of all claims arising out of the War, at a net total of £25,591,428, tlie Serb-Croat-Slovene Government agree to pay, and Great Britain agree to accept, the following annuities, vig. :— £ In 1927 In 1928 In 1929 . . In 1930-35 inclusive In 1936-39 inclusive ee In 1940 and 1941 inclusive In 1942-88 inclusive m 150,000 200,000 250,000 300,000 a year. 350,000 a year. 400,000 a year. 600.000 a vear. Great Britain agree to accept the reduced annuities provided for above during the years 1927 to 1941 inclusive in view of the liabilities of the Serb-Croat-Slovene Government during those years in respect of the Relief Debt of £2,068,843 due to Great Britain, which are not affected by this agreement. 2. The above payments shall be made in sterling at the Bank of England, London, in equal half-yearly instalments, the first half-yearly payment being made within one month after the conclusion of this agreement, and the subsequent payments being made on the 1st December, 1927, and on the 1st June and the 1st December of each subsequent year. up to the 1st December, 1988. inclusive. 3. On or before the 30th September. 1927, the Serb-Croat- Slovene Government will issue and deliver in London to His Britannic Majesty's Treasury a Serial Bond, substantially in the form shown in the annex to this Agreement, in respect of each of the instalments to be paid under the provisions of Article 1 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 Serb-Croat-Slovene Government or any political or local taxing Authority in the Serb-Croat-Slovene Kingdom. Interest at the rate of 6 per cent. shall be charged on anv instalment due and not paid at the due date. 4. If at any time while the payments under Article 1 of this Agreement are continuing it appears that the aggregate pay- ments 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. heing allowed on both sides of the account; and if that account shows that the receipts exceed the payments, Great Britain will credit the Serb-Croat-Slovene Government against the payments next due by them under Article 1 of this Agreement, with such proportion of that excess as the payments effectively made by the Serb- Croat-Slovene Government 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 the Serb-Croat-Slovene Government 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 the Serb-Croat-Slovene Government up to a similar proportion of such deficit within the limit of the total amount of the credits already allowed to the Serb-Croat-Slovene Government 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 Liberation Bonds will be taken at their annual value, taking account of amortisation. 5. The accounts relating to the war debt of the Serb-Croat- Slovene Government to Great Britain shall be finally closed, and, save as provided in Article 1 of this Agreement, His Britannic Majesty's Government in Great Britain and the Serb- Croat-Slovene Government mutually renounce all claims and counter-claims arising out of the War Debt of the Serb-Croat- Slovene Kingdom to Great Britain. 6. Upon the execution of this Agreement and the delivery to Great Britain of the Bonds provided for in Article 3, duly exe- cuted, His Britannic Majesty's Government in Great Britain will cancel and return to the Serb-Croat-Slovene Government the Serbian Treasury Bills which they at present hold. Signed in duplicate at T.ondon on the ninth day of August. 1997. For His Britannic Majesty's Government in Great Britain : WinsToN 8S. CHURCHILL. For the Serb-Croat-Slovene Government : 3. DIOURITCH. ANNEX. F'orM oF Box. Dated 1st January, 1927. Maturing lst 10. No. The Government of the Kingdom of the Serbs, Croats, and Slovenes, ‘or value received, promise to pay to His Britannic Majesty's Govern- ment in Great Britain, or order, on the first day of 19 the sum of pounds sterling at the Bank of England, London. The payment due under this bond will be made without deduction for, and will be exempt from, any and all tax and/or charge, present and future imposed by authority of the Serb-Croat-Slovene Govenment or their possessions or by any political or taxing authority within the Serb-Croat-Slovene Kingdom. This bond is issued by the Government of the Kingdom of the Serbs, Croats and Slovenes pursuant. to the agreement of the ninth day of August, 1927, for the settlement of the War Debt of the Serb-Croat- Slovene Government to His Britannic Majesty's Government in Great Britain. fn witness whereof the Government of the Kingdom of the Serbs, Croats and Slovenes have caused this bond to be executed on their sehalf by thereunto duly authorised. 841681) Wit. 157921172 1125 11/97 I. St. @. 18 13 * C53 i } ot bg 52 I 5 LO nN pe 0 (Nn > oh No p= - ~ 2 ry -’ a) - Fa T al £8 » on ¥ ot ¢. If at any time while the payments under Article 1 of this greement are continuing it appears that the aggregate pay- 1ents effectively received by Great Britain under Allied War Jebt Funding Agreements and on account of Reparations or of -iberation Bonds exceed the aggregate payments effectively made 7 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 eceipts exceed the payments, Great Britain will credit the derb-Croat-Slovene Government against the payments next due oy them under Article 1 of this Agreement, with such proportion of that excess as the payments effectively made by the Serb- Jroat-Slovene Government under Article 1 of this Agreement rear to the aggregate sums effectively received by Great Britain inder all Allied War Debt Funding Agreements. Thereafter a similar account will be drawn up by the British Treasury each vear and any further excess of the receipts over the payments shall each year give rise to a credit to the Serb-Croat-Slovene Fovernment of a proportion of such excess calculated in the manner indicated above. On the other hand, any deficit shall ve made good by an increase in the payments next due by the Serb-Croat-Slovene Government up to a similar proportion of such deficit within the limit of the total amount of the credits ready allowed to the Serb-Croat-Slovene Government 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 Liberation Bonds will be taken at their annual value, taking account of amortisation. 5. The accounts relating to the war debt of the Serb-Croat- Slovene Government to Great Britain shall be finally closed, nd, save as provided in Article 1 of this Agreement, His Britannic Majesty's Government in Great Britain and the Serb- ‘roat-Slovene Government mutually renounce all claims and sounter-claims arising out of the War Debt of the Serb-Croat- Slovene Kingdom to Great Britain. 6. Upon the execution of this Agreement and the delivery to “reat Britain of the Bonds provided for in Article 3, duly exe- wted, His Britannic Majesty’s Government in Great Britain will cancel and return to the Serb-Croat-Slovene Government the Serbian Treasury Bills which they at present hold. Signed in duplicate at London on the ninth day of August. 1997. For His Britannic Maiesty’s Government in Great Britain : Winstox S. (CHURCHILL. For the Serb-Croat-Slovene Government : G. DIoTRITCH. 4 1}