FOREIGN BUSINESS 165
countries emerging before the official date of the conclusion of
war (August 31st, 1921) must under the treaties be settled at
pre-war rates of exchange. This, however, is complicated by the
setting up of new States in Eastern Europe. An illustrative
instance may be given in the case of Hungary. Hungarian
nationals resident at the above date in Hungary as now con-
stituted are entitled to have claims arising prior to that date
settled at the pre-war rate of exchange. Residents in and
nationals of one of the new States who intimated such residence
and nationality to the Clearing Office prior to January 1922
and obtained permission to have their debts withdrawn from
the supervision of that office are entitled to direct payment of
such claims as above at a rate which seems uncertain; the
treaties do not determine it. Residents in one of the new States
who did not take the steps above described are apparently to
get payment at present rates of exchange, but through the
Clearing Office. This will serve as an example of the complica-
tions and difficulties that may arise.
In the present condition of Central European currencies it
is clearly to the advantage of British Companies to offer policy-
holders surrender values of such a nature as, while far beyond
the farcical figures which the exchange would give, might still
close the contract upon terms which would remunerate the
insurers. This has probably to some extent been already done
by mutual consent. It involves no injustice to the policy-
holders, for the restoration of the currencies to anything
approaching pre-war value is improbable for a long time to come,
and the contracts are in currency.
The tendency on the whole, as a result of the war experience,
among the British Companies seems to be to close down foreign
business, at all events so far as the ex-enemy countries are
concerned. The problem may be approached either on the
lines suggested in the preceding paragraph, or by way of sale
to some established foreign Company. Central European
business, costly at the best and now beset with many diffi-
culties, appears to be losing its attraction.
