Agreement for the Settlement of the War Debt of
Portugal to Great Britain.
Wusreas the Government of the Portuguese Republic (herein-
after called Portugal) stand indebted to His Majesty's Government
in Great Britain (hereinafter called Great Britain) for the sum of
£283,527.186 represented by Portuguese sterling Treasury Bills held
by His Majesty's Treasury ;
And whereas the two Governments, animated by the close ties
of friendship which have for many years bound together their
respective countries, desire to arrive at an Agreement for the
funding of this debt on terms compatible with the financial capacity
of Portugal :
Now, therefore, the Right Hon. Winston Leonard Spencer
Churchill, Chancellor of the Exchequer of Great Britain, and His
Excellency General Jofio José Sinel de Cordes, Finance Minister of
Portugal, duly authorised thereunto by their respective Govern-
ments, subject to such ratification as may be required, have agreed
as follows -—
1. Great Britain agrees to cancel Portuguese Treasury Bills in
respect of the sum of £8,898,597 in consideration of the services
and supplies rendered by Portugal to Great Britain during the war
free of charge and in settlement of all outstanding claims in
sonnection with the accounts relating to the War Debt.
2. In full and final settlement of the balance of the Portuguese
War Debt, amounting to £20,188,589, Portugal agrees to pay and
Great Britain to accept the following annuities :—
For the year 1926
For the year 1927
For the year 1928 ... ce he
For the years 1929 to 1938 inclusive
For the years 1989 to 1987 inclusive
For the vear 1988
£
125,000
250,000
300,000
350,000 a year.
400,000 a year.
200. COO
The above payments will be made in sterling at the Bank of
England, London, in equal half-yearly instalments on the 15th
June and the 15th December of each year, save that the payment
for 1926 will be made in full on or before the 25th Jannary, 1927,
and the payment for 1988 will be made in full on the 15th June,
1988.
3. Portugal will issue and deliver to the British Treasury on or
before the 81st January, 1927, a Bond substantially in the form
set out in the annex to this Agreement in respect of each of the
instalments provided for by Article 2 of this Agreement, excepting
the instalment for 1926, which is payable immediately.
4. The payments due under such 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 or under authority of
Portugal or anv political or local taxing authority within Portugal.