Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-12-01
Finland Accepts Offer
Of Congress 10 Delay
Debt InsfaIIment
Will Pay Amount
Over l0-Yeor Period,
Keeping Credit Good
BY GARNETT.D. HORNER.

ANAAA WAAA fCosfSAAS RoykAA va
her $235 1893 debt installment due
the United States December IS,
under an arrangement authorized
by Congress last June, the State
Department disclosed last night.
The department made public an
exchange of notes between Secre-
tary of State Hull and Hjalmar j.
Procope, Finnish Minister, in which
Mr.. Procope said his government
most gratefully accepts" the offer
Of postponement made by Congress.
Under the congressional resolu-
ton, approved by President Roose-
welt June Is, Finland was given the
option of postponing her debt in
stallments due this year and pay
ing the amount over a 10-year
period in annual installments. The
deferred amounts will bear per
cent interest.
The Finnish Minister already had
arranged payment of the $159, 1898
installment due June Is when the
postponement resolution was signed
and declined at that time to take
advantage of the opportunity to de-
Ter the payment.
Desires to Honor Obligations.
In note to Secretary Hull on No
vember 20 Mr.. Procope informed
him:
I'm spite of the many difficulties
confronting Finland at present and
I@n
sources that are badly needed in
the rehabilitation of the country.
1t is the firm intention and desire
OF the Finnish government to main
tain her credit record and to keep
all her obligations in the same wav
as she has always done in the past.
However, the Finnish govern
ment has with sincere gratitude
noted the resolution which .
offers the Finnish government the
opportunity of the postponement
OF payments specified therein.
MY government appreciates this
renewed proof of understanding and
sympathy, so much the more as they
see IN this resolution itself and in
the debates which preceded it a sign
OF Willingness on the part of the
United States Government for
more extensive consideration of the
TWO debt agreements to which the
resolution refers.
Under these circumstances and
taking into consideration the
present difficulties confronting Fin
land, my government most CRATE
fully accepts the offer contained in
the said resolution"
Ready to Enter Agreement.
The Finnish Minister said he was
ready to enter into an agreement for
the postponement under the terms
stipulated by the resolution. Secre-
tary Hull informed him that he had
transmitted this information to
Secretary of the Treasury Morgen-
THAI.
The S235 1893 installment due De-
cember IS includes $4,000 principal
and sl40,35750 interest due under
the 1923 funding agreement, in ad-
dition to $1903O.50 annuity under
the 1882 Hoover moratorium agree
ment.
Finland so far has maintained a
consistent record of meeting pay
ments on the loan incurred for relief
and rehabilitation purposes after
the World War. The original amount
of the loan was 1921 ,926.17. Fin
land has repaid a total of 1891, :
291.77, including interest and in
stallments on the principal. The
total debt outstanding, however,
amounts to $8,126, 62286-nearly as
much as the original loan because of
the rapid accumulation of interest.
Congress adopted a resolution au-
thorizing postponement of the 1910
installments because of sympathy
here for Finlands plight as the
result of Russia's invasion of the
little republic. Under the arrange
ment offered by Congress, the de-
ferred installment of s235, 1893 will
be paid in 10 annuities, the first due
next year. Each annuity payment
may be made in more than one in
stallment.