New-York tribune., 1922-06-17

fconnaIed fses raos ore
broad and statesmsnlikc spirit. lio
added that the harmony among the
foreign md American member ~ 'he
international committee was complete.
The fun text Of the plan has not set
been issued. but q summary vas pre-
sented I'm The following statement
issued b. Nj Lamont for the commit
tee;
Finance Minister Ge IA Huerte and
The international committee OF bank
srs on Mexico this afternoon signed p
,onprehensive agreement covering the
matter Of the Mexican government
external debt. The settlement. arrived
~. rs stated earlier In the week by the
Mexican Minister ia subject 20 the ap-
proyal Of President Obregon.
Bondholders Yield Points
"As c preliminary the agreement re
cites the detarm ination OF the Mexican
government, 10 fulfill its obligations 20
the full extent Of rs capacity. and
states that the international commit
toe. recognizing thc difficulties Of the
situation caused by the revolution and
desiring 90 cooperate with the govern
ment in promoting the full economic
restoration OF Mexico as repidlly as pos
s.bie. will recommend that tho bond
holders make substantial adjustments
Of their rights.
"The more important points covered
In The agreement relate 20 the handling
CT current interest, arrears Of interest
and shc railways The plan Of adjust
neut relates 20 al external Mexican
government debt. direct or guarantced'
,he national railways debt and certain
,o-caIled internal government debt
lereely held outside Mexico, tho total
face value Of The securites covered
being more than $500 0co 900 gold, on
clich tho Interest in arrears amounts
TO approximately $20o.000'0C0.
as 20 current interest. cash pay
mpnts I'm varying propositions among the
different bond issues, are % BE begun
after Januarr =. 1923. out Of special
fund ns provided Cor in the agreement,
tho schedule Of disbursements in gen
eral 20 he based on the relative values
and priorities Of the different ISSUES oi
bonds. For such part Of current inter
| eat as is not met IN cash scrip will be
issued and redeemed in due course
certain funds being made available for
this purpose.
"The special fund for current. inter
eat etc. will be increased each year
Iuntn January !. 1928. when full serV'
| ice OF the debt will be resumed. Inc
oil export taxes and sureharge. on
{ railway gross receipts will be paic into
/ this special fund
"As to back interest, all cash pay
nents are 10 be waived. The matter
/ will be arranged b. the deposit OF over.
due coupons with n trustee. Agalns'
these coupons receipts will be issued
10 be amortizei without interest over
n reriod of time. This arrcnsem en'
lie. in effect. equivalent 90 canceliatior
Of part Of the back interest.
Roads To Be Privately Managed
as % the railways. they arc 10 b'
opcrated bv private management as be
fare the revolution. The government
will agsume by Endorsement all rail
way debt not previously guaranteed
Tho rights Of foreclosure hthcrt'
Leld bv the bonds will be suspended
en- long a. the plnn is being CARRIE
ou4 thereby protecting both the stOc'
ownership Of the Mexican government
and other shareholders, as well as th'
Ultimate rights Of the bondholders.
Vn general. in order 10 give TIM
for fun resumption Of all cash obi
ea:ions. oil classes Of bondholders arr
10 agree 20 temporary suspension o.
sinking fund rights, ETC. during I'VE
wear period. after which al contrac
clauses viii again become effective
Full details % the plan will be sub
ritfed 20 tho bondholdcrs by the com
n,l.tee as soon as possible and deposit
viii be invited by the banking house
and institutions hitherto icen;iht'
with Mexican government hnhncing.
The signatures were attached 20 IN
agreement a. the offices Of the Mex
can Financial Agency In New YORK a
l2O Broadway, where most o. the dis
eussions have taken place. The ceci
zion upon settlement had beef
reached ~ a plenary session o. IN
conference earlier in the afternoon
a, which the fnal draft Of the agree
ment was presented for eonsideratioi
and rr Lamont authorized 20 act 20
the committee. T. H. Patehin. secretar.
Of the committee. attested the sigma
lures OF Senior De la Huerta and Nj
Lamont.
The settlement was arrived at eX
actlv two weeks from the opening o
the conference here. but actually rep
resents the results Of negotiations an
conversations which have proceede
since last October Al that time. Nj
Lamont. Jeremiah Smith. OF counse
20 the committee. and Mr. Patchin wen
70 Mexico City 10 take up the question
Of debt adjustment and the preliminar
bases Of agreement were reached. Ipo
M Lamont's retgrn here, discussion
proceeded informally between the Mex
lean Financial Minister and the bank
crs, Eduardo lturbide serving in ihi
city ss Senior de Ia Husrta's interme
diary.
As conversations proceeded the com
mittee was strengthened in its position
By the addition 10 IL OF the interest
represented in this country by Speye
& Co. and abroad BY J. Henry SchrOc
der & Co. Of London. who had bec'
carrying on separate negotiations VIII
the Mexican government. Late u
March u became apparent that th
question was approaching q head an
the following month Mr. Lamont sale,
70 report 10 the international commit
tee al its first full session. At ths
time admission Of representative o
the German holders o. Mexican Sc
Clrities % participation on tlc com
mittce Was decided upon.
Notwithstanding the near approach .
an accord, the sessions IN New lor
have had 10 weather several periods o
Ciscouragcmeut before all phases o
fhe problem were adjusted, anj az time
there has been full expectation tha