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    "label": "Department of State, Report on the Conference on German External Debts, London, February-August 1952",
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    "title": "Department of State, Report on the Conference on German External Debts, London, February-August 1952",
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{
    "seq": 21,
    "pageIndex": 0,
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    "ocrText": "20\nby existing regulations, the percentage being different in each case and\nranging from 20 per cent. to 67 per cent. of the outstanding loans. The\nGerman representatives stated that the Federal Government do not at\npresent have the power to alter this situation, which results in particular\nfrom the relevant regulations under the currency conversion legislation. They\ndo agree that the Federal Government shall do everything in its power\nto facilitate the settlement of the debts of the Bank and the payment of\ninterest and amortisation as provided under the said Laws and Regulations.\nThe creditors' representatives reserve the right of the creditors to take\nsuch action as may be open to them to rectify what they consider to be a\nsettlement prejudicial to and discriminatory as between different classes of\ncreditors.\nIt is understood that the Bank retains its liability to the creditors in respect\nof the indebtedness secured by assets in East Germany and will service that\nliability as and when those assets become available to it.\nThere are several other institutions in a similar position where the same\nprinciples should be applied.\n6. In dealing with the Potash Loan in any plan of settlement under the\nprovisions of this Agreement, there will need to be considered the special\nfeatures of this loan.\nARTICLE IV\nOutstanding Amount of Debt\n1. The outstanding amount of any debt is the unpaid principal and all\nunpaid interest due up to 1st January, 1953, such interest to be computed as\nsimple interest at the rate established in the existing contract, regardless of\nwhether the debt has matured before that date and regardless of the effect of\nany default under the existing contract prior to that date.\n2. An amount is unpaid within the meaning of paragraph 1 of this\nArticle if it has not been received and accepted expressly or implicitly by\nthe creditor. Acceptance by the creditor of funding bonds, scrip or cash\nfrom the Konversionskasse constitutes payment of any debt, or of any part\nof a debt, in respect of which they were accepted.\nARTICLE V\nSettlement Terms\n1. Principal\nThere shall be no reduction in the outstanding principal amount.\n2. Foreign Currency Debts with Gold Clauses\n(a) Gold dollars and gold Swiss francs.\nIn the case of debts expressed in gold dollars or gold Swiss francs,\nthe debts shall be computed on the basis of 1 currency dollar\nequalling 1 gold' dollar and 1 currency Swiss franc equalling 1 gold\nSwiss franc, and the new contracts shall be expressed in currency\ndollars or currency Swiss francs respectively.\n(b) Other currencies with gold clauses.\nIn the case of other debts with gold clauses (excluding German\ncurrency debts with gold clauses-see paragraph 3 below) the amounts\ndue shall be payable only in the currency of the country in which\nthe loan was raised or the issue was made (below referred to as\n\" the currency of issue\"), the amount due being computed as the\nequivalent at the rate of exchange when the amount is due for\npayment of a sum in U.S. dollars which shall be arrived at by\nconverting the amount of the obligation expressed in the currency\nof issue into U.S. dollars at the rate of exchange ruling when\nof the issue loan so reached shall, however, not made. be less The than if it were of computed currency\nwas raised or the issue amount\nat the rate of exchange current on 1st August, 1952.\n3. German Currency Debts with Gold Clauses\n(a) The principle is accepted that such financial debts and mortgages,\nin Gold Marks or in Reichsmarks with a gold clause, as had a\nexpressed (b) foreign Goldmark, constituting gold clause, specific Deutsche 1 foreign Deutsche Mark\nspecific character shall be converted into at the\nrate of 1 or 1 Reichsmark with a = Mark.\nThe definition of the criteria the character\nof the above indebtedness shall be the subject of further negotiation. Both\nsides reserve their position as to the question in which cases and in which\nway the above principle can be implemented. It shall lie with the German\nDelegation to decide how the solution arrived at can be fitted into the"
}