Evening star., 1925-10-10

continued from First PaEe.)
States. we beg to submit to you the
following proposal:
Il. That as there are q number of
disputed items between US as to the
capital sum of the debt, we believe
that instead of entering upon the
very large expense and delay involved
on both sides by a. reaccounting, We
are prepared to yield on some consid-
cradle part of these items and to pro.
pose to you a round sum OF settle
ment-that is, that we should consid-
er the capital of the debt as at June
Is, 1925, to be $115, 900, 900. If, on
the other hand, your commission
prefers, we are prepared to enter
upon an accounting of these transac-
tions and in this manner determine
the capital.
49, That if you can see your way
to accept this proposal of S115.000, 900
we are prepared to at once enter into
the contract of settlement on the
terms which we have discussed.
Terms for Funding.
The American commission accept.
ed the offer of s115, 100000 as the
capital sum as of June Is, 1925. and
a funding of the debt has been agreed
upon on the following terms:
''ta) The principal to be paid over a
period of 90 years, with interest at
rates of 3 per cent for the first 10
years and 312 per cent thereafter.
''tb) During the first IS years the
total annual amount to be paid is fixed
at s3,000,000 yearly and the balance
of each annuity at the above Interest
rates is funded over the remaining "A
years.
"A definite agreement, subject to
approval of Congress, will be pre-
pared for signatures and submission
to the President
Terms of $3,000,000 annually for
Is years, were granted because, it
was explained. the Czechoslovakian
government has heavy obligations
both internally and externally, to
meet in the next Is years. amounting
to. from s36,0000 900 to s3S,0O0,000 an
nually.
The fiat sum was arrived at in or
der to ease the burden on the new re-
public. The sum includes both in
terest and principal.
Although Treasury experts had not
figured up the total amount to be paid
by Czechoslovakia, it was estimated
today it would be around 100000 900
in the 62-year period. The first in
terest payment will be made next
DeC6f1DcT.
The settlement arrived at repre-
sents a compromise between the po-
sitfons taken by the two governments
at the beginning, when the American
Commission had on its books a CAPT.
tai debt of S91.879,671O3, while the
visitors said they acknowledged a
debt of something more than $780,
100000.
This difference was said to have
been caused by the nature of the ac-
counting kept in Europe during the
hectic days of the war, before the
new republic was actually born. The
debt represented many items, in
cluding war supplies, American Re-
lief Administration food, repatriation
of soldiers, cash advances. relief sup
plies, United States Grain Corpora
ton flour and accounts with the War
Department and United States Ship
ping Board.
Believe Loan Likely.
NEW YORK. October 10 CP.-The
agreement to fund Czechoslovakia' s
war debt to the United States, Wall
street bankers believe. will pave the
way for an early fotation of a $50.
ZOO, 900 Czechoslovakian loan.
Negotiations for the financing were
virtually closed several months ago.
ut which time 1t was reported that of.
fering Of the first installment, prob.
ably amounting to $4,000, 900. would
Immediately follow a debt settlement.
The National City Co., it lis under.
stood. will handle the loan.