The Sun.
London, England, 1857-03-27 00:00:00

BTJENOS AY.RES FOREIGN DEBT.

The Committee of Spinish Arucrioan Bcmdh
have s>nt us a, copy of a ietter rectlived by 'J'eril
from Messrs Baring Bro-Ler, an and a tram-
latiou of ;he document me!itioned therein :

"8, Bishopsgate-street Within, March 25.
"Sir—We have to hand you herewith, for the infor-
mation of the Commie ee nt Spanish Bondholders. a COPY
of a letter which we have just received from the Finance
Minister of Buenos Ayres in fnrther reference to the pro-
posel settlement of their English loan.
"At the same time we may mention the receipt of
remittance from the Government by the came mail of
2,2181. 155.. on account of interest on the loan.
" We are, sir, your must obe,iient. servants,
(Signed) •" BARING BROTHERS AND CO.
"Alfred Godfrey, Eq., S-cretary to the Committee
01 Spanish American Bondht.bler."

(Tranlation.)

"'Buenos Ayres, Jan. 21.
"The undersigned has the honour to acknowledge the
r-ceipt of your esteemed letter of 811 Dec. last, togsther
with a copy of the resolutions passed at a public meeting
of the bondholders which took place in your city on the
26th Nov. last in referenoe to t .e proposals for an 0r;
Pe
rangement submitted to the consideration of the i
parties.

" My Government, having taken doe, notice of your
important letter, has directed me to reply to it, exprege
ing its satisfaction on seeing the realisation, in the afar'
said resolution., of the hopes entertained by my Govern-
ment that the London creditors would not fail t°
appreciate its efforts to support the country's credit, to"`
that they would accept,the proposed bases for the der'
nitive arrangement of the debt The Government has
been -no less gratified that the bondholders have ap-
pointed you as t'ae agents to Carry out the said agree-
ment.

"All the considerations put forth by you to eb°W
the justice and expediency of modifying my government °
proposais with r e->rd to the settlement of the debt, a°
to the interest it shall pay, increasing that which is Pr°.
posed on the Deferred Bonds, and .anticipating the
period from which the interest is to begin to run-411
these considerations, I say, have bad, before pow, the
deliberate discussion and most serious attention of WI,
government, and it would be useless to refer now eel
to matters already amply considered and di,cussed ; and
you may rest assured the.• my government, in deci,ling
on its last proposals, went to the utmost of the coned"
-ions which it could make with the expectation of being,
able to fulfil them, considering the present situation e`
the country, and its prospective resources with regard t°
its engagements.
" ivy government has never lost sight of the desirable'
ness of raising the foreign credit of the country to its
propor height, but it is exactly on account of this coral-
Aeration that it could not make to its creditors snore
favourable proposals than those it really did rnalv, with
an assurance of being able to fulfil them ; and the G°.
vernment is firmly persuaded that an advance on the
proposals made respecting the interest on the Deferred
Bonds would be an imprudence on its part ;
and, being
convinced thereof, I have been directed to tell you Viet?
notwithstanding its anxious wishes, it has not got the
means to belare its en:agements beyond what has 6„rel,;
offered in the bases of lst Oct. Nevertheless, tt
situation of the C :untry should hereafter prove so favour
able as is hoped by you aid the Government, the latter
will lose no time, for its own sake, in epontaneouslY
proving the position of its credit >rs in reference to th t
Deferred Bonds, be it by increasing the assigned ietere:j
or the redeMption fund, cr by anticipating the DI
peri al for the payment thereof.
" With regard to applying and including in the Pre
sent arrangement the pr posal of the former non-acceetele
ti
bases—namely, to admit in payment of public land'
„„t
bonds for arreared interest at par—such demand cen'it
be admitted by my Government. In the first Pl4fe'
must not be deemed applicable in * the present ia't'n!
on the mere plea of its having been proposed previoult:
inasmuch as, according to the present arrangement,
ef
Deferred Bonds w:11 bear interest, while in the ford
one they would have borne no interest whatever, Po
merely as a means for redeeming the principal, it 'lot
one of other proposals to receive them at par, in Win'
for public lands.
" Therefore the present case is very different. so,
again, by acting upon your suggestion, the Governeli
would lose the advantage pointed out by your Pdg
selves—namely, to redeem gradually the Deferred IPi
at less than par, consequence of their interestbeak,
borer than the Active Bonds; For these reasons 11
Government cannot admit your proposition in thg.
respect.

"Respecting the assigr.ing of the Canon enfiteofilt•
of the public lands to the payment of the engageMent,
to be entered into with the bondholders by the presen_,
arrangement, my government does not deem it ineo7.:
dient to agree • that the said cannot' be specifically
signed to the payment of the interest and redernefllo.
fund for the Active and Deferred Bonds, for the wb°,lo,.
amount of those bond., soy deficiency thereof to be inv.:
good from the other revenues of the state ; it being ilfA
derstood that from the said 'canon' there is to be reser;
a sum not to exceed 15,000/. for the liquidation of t
still cutstandiog classified debt ;. and likewise Whats
owing and collected henceforth of the proceeds frool ,h
respective lauds of the cr,untry towns apportioned by the
law to the re-pective municipalities.
" Lastly, with regard to the principle of the siviltidrr,
fund for the Deferred Bonds, and to the cancelling a
depositing of WI the purchased or redeemed bonds, 01
uvernment coincides entirely with the views and or
gestions expressed in y ur letter.
"After these candid explanations, and theproofs which(
my Government has already given to the bondholders
its earnest desire to settle satisfactory and equitably fq,
claim., and offering at the same time guarantees for °l;i
s
punctual fulfilment thereof, the Government trusts al°
you, in behalf of the said bondholders, will not hesitsf:
to consider as adjusted and agreed the bases of the 8e„
Clement, in the manner proposed by my Governina";
in order that the said Government may be.placed io
condition to present itself to the hon. Legislative Ghstbiro
bers, ,ho meet on the Ist of May next, soliciting 1,6
competent authorisation for the final completion of L'
arrangement, that it may be cairird into immediate '3%ei
cation, remitting to the bondholders the monthly atir,hi).
that may have accrued for the present year.—l lave ""
honour to be, &c.,
(Signed) " NORBERTO DE LA RIESTBA.
"Messrs. Baring Brothers and Co., London."