San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1925-08-19
DEBT
NEGOTIATIONS
COMPLETED

ln% the personal npprONnl OF ITcSlueH'
Coolidge. terms for funding the Bel
gian war debt to the United States,
have been worked out by the debt COM
missions of the two countries after
negotiations Of unusual brevity.
Little moro than a week was re-
quircd to bring about accord of the
program Of repayment Of the little
Kingdoms debt, which was fixed at
S417.7S0.000 as of June 10. 1929.
The funding plan, agreed upon late
yesterday came in the same month
which II years ago marked the open
ing the World War.
The terms provide for a remission of
interest on the S171,7SO,000 loaned
prior to the GrmiSticc and for part
remission of interest on S246,OOO,OOO
borrowed for reconstruction work.
C2.YEAE TERMS.
The agreement subject to ratfica-
ton by the American Congress and the
Belgian government, was described rs
recognizing by the United States "a
wcighty moral Obligation" as result
of assurances given the little kingdom
by President Wilson, ut the time OF
the Versailles peace conference, and
also the right of Belgium to particular
and special treatment by this nation.
The terms call for complete pay
mCnt with in 62 years.
The S171. 10000 loaned during the
time of actual fighting with Germany
Is to be paid free of all accrued or
future interest.
The interest on the poSt-armisticc
debt of S246.OOO,000 was fixed at the
rate Of IL per cent.
The Americans agreed TO foregO n
| part of the interest on this amount
for the first 10 years and arbitrary
amounts were established bringing a
reduction Of nearly $j0,OOO,OOO.
AMERICANS BALK.
The Delgians insisted during the
negotiations that the prc-armisticc
loan should he considered a debt by
Germany to the United States because
such a proposal was accepted BY
President Wilson at the peace confer
cnce."
The Americans, however, refused to
accept this arrangement but declared
that while no legal obligation rests
upon the United States in the mat
ter, there does continue a wcighty
moral obligation as a result of assur-
ances given which entirely differCn-
tiates this sum from all other debts
due the United States from foreign
countries"
The funding program in consequence
laid down for the prc-armistice debt n
schedule of repaymcntS calling tor
Belgium to pay $1,000,0O0 in 1926,
and the same amount in 1927 with in
creascs in each Of the next four years
until 1892 when the annual payments
becomes 100000.
S1,74O,OOO INTEREST.
The annual payment then will con
tinue at this figure until 1887 when
a final payment Of $2,2SO,OOO will be
due.
Concerning the post-armistice loan,
| the settlement provides that Belgium
pay S1,740,000 as interest and ST.
100000 on the principal for the first
year.
The second year the total payment
| will be $3,lOO,OOO, OF which SZ,uOV,-
900 will be interest.
The charge for interest then in
creases sharply in each succeeding
year and the payment on principal will
decrease until the end of the 1O-year
period. -,
In the eleventh year Belgium will
pay $S,172,000 interest and $1,6OO,OOC
principal.
Thereafter payments will remain in
excess of $9,000.O00 per year until the
debt has been liquidated.
After the agreement had been an
nounced the Belgians had no comment
to make.
Senator Smoot. Utah, and Reprcsen
| tative Burton, Ohio, both American
commissioners, however, expressed thu
opinion that the terms would prove
acceptable to Congress, although Mr.
Burton was of the opinion that some
senators might raise objections.
The American commissioners alsC
made it clear that they considered Bel
GUM "the most favored nation" among
the debtor group and that the funding
plan could not be looked upon as
| precedent that might apply to eithel
France or Italy, the two principa
debtors whose accounts remain open