Agreements between His Majesty's Government in Great Britain and the Austrian Government respecting the Settlement of Enemy Debts referred to in Section III of Part X of the Treaty of Saint-Germain of September 10, 1919. Signed at Vienna I. August 27/October 2, 1920; II. August 11/September 11, 1924; No. I (i). Mr. Bridgeman to Dr. Renner. Mr. Secretary of State, Vienna, August 27, 1920. WITH reference to Mr. Lindley's letter to you of the 13th August regarding the adoption of the Clearing Office scheme as between the United Kingdom and Austria, I have the honour to inform you that the negotiations which took place in London between Dr. Reisch and the President of the Board of Trade have resulted in agreement upon the provisions which are set forth in the enclosed memorandum and which have been accepted by Dr. Reisch, as is shown in the correspondence between himself and the President of the Board of Trade, copy of which is also enclosed herein.* Dr. Reisch desired that the arrangement reached should not be concluded in the form of an agreement, having regard to the fact that it did not include any concessions on the part of the Austrian Government, and that the concessions made in it by His Majesty's Government were in certain respects less favourable than those in the agreement which he had concluded in France. The President of the Board of Trade has expressed his willingness to agree to the method of procedure indicated in the correspondence, and I have received instructions from His Majesty's Principal Secretary of State for Foreign Affairs to communicate the memorandum above mentioned to the Austrian Government and to furnish by telegraph the text of the latter's reply. I have therefore the honour to request that you will be so good as to acquaint me with the views of the Austrian Government on the subject at your earliest convenience. The arrangement and the reply of the Austrian Government could then be published simultaneously in England and in Austria. I have, &c. R. BRIDGEMAN. * Not printed. 4319 Wt. 1000 2/28 F.O.P. 17243 B 2 Enclosure in No. I (i). His Britannic Majesty's Government having given notice that they adopt Section III and the Annex thereto of Part X of the Treaty of Saint-Germain as between Austria on the one hand and the United Kingdom and the British Colonies and Protectorates, with the exception of Egypt, on the other hand, and being desirous of affording all opportunity to the Austrian Government for the full execution of their obligations thereunder, are prépared to agree that the said section and Annex shall be subject in their application to the provisions set out below. His Majesty's Government expect that the Austrian Government will agree to accept notice of the adoption of the said section and Annex as between Austria and any of the British Dominions or India if given at any time within a period of one month from the present date.* 1. Notwithstanding the provisions of article 248 (a) of the Treaty of Saint-Germain, direct communication may be permitted with the consent of the two Clearing Offices between the interested parties with regard to the settlement of debts due by Austrian nationals to British nationals. Such settlements may be permitted with the sanction of the Clearing Offices in each case. The British Clearing Office will be prepared to consider applications made before the 31st March, 1921, for the release of property, rights and interests chargeable under paragraph 4 of the Annex to article 249 of the Treaty with a view to the settlement of debts by amicable arrangement, provided that the proportion of the assets so to be released to the amount of the debts removed by the arrangement from the operation of the Clearing Office is not such as, in the opinion of the British Clearing Office, will have the effect of reducing the dividend payable from Austrian property subject to the charge to British creditors generally. 2. The proceeds of liquidation of Austrian property, rights and interests and cash assets of Austrians, within the territories of the British Empire in respect of which notice has been given of the adoption of the Clearing Office system, will be credited to the Austrian Government in the account referred to in paragraph 11 of the Annex to article 248. Similarly, the proceeds of liquidation of British property, rights and interests and cash assets of British nationals, for which the Austrian Government is liable to account in accordance with the provisions of Section IV of Part X of the Treaty of Saint-Germain, shall be credited to the British Government in this account. Compensation awarded by the Mixed Arbitral Tribunal under paragraph (e) of article 249 shall also be credited in the same account. 3. His Majesty's Government expect that the Austrian Government will use its best endeavours to collect the debts due through the * Such notice was given on behalf of the Governments of India and New Zealand. Clearing Offices from its nationals to British nationals as promptly as possible. This requirement applies, in the case of debts originally payable in kronen, only to the original amount in kronen of such debts with interest thereon at the rate provided by Section III of Part X of the Treaty. His Britannic Majesty's Government will not require payment of the balances referred to in paragraph 11 of the Annex to article 248 within the periods therein prescribed. In return the Austrian Clearing Office shall pay to the British Clearing Office, not later than the 31st March and the 30th September in each year, beginning with the year 1921, the sterling value of the amounts collected from Austrian nationals during the previous six months, the sum to be paid in each half-year not being less than £250,000 sterling, the sterling equivalent of 140 million kronen, whichever of the two is the greater. Each of the first eight minimum payments to be nade may, however, be reduced to the extent of £100,000 or the sterling equivalent of 56 million kronen by the amounts previously paid in cash, direct by Austrian debtors to British creditors in accordance with arrangements sanctioned by the Clearing Offices, and provided out of funds which are not chargeable under the Treaty. Such payments shall continue until the balance against Austria in the account above referred to, with simple interest at 5 per cent., shall have been fully met. The payment to be made by the 31st March, 1921, shall include the sterling value, at the current rate of exchange, of the proceeds. of liquidation and cash assets of British nationals referred to in article 249 (h) (1) of the Treaty of Peace. 4. His Majesty's Government propose that the detailed arrangements for the restitution of British property in Austria should form the subject of a further agreement to be arrived at at the earliest possible date. 5. Subject to the right of the British authorities to refuse permission in any particular case and to the laws for the time being in force, Austrian nationals will be permitted, upon request notified to the appropriate British authority, to bid at any sale by auction of their property in the United Kingdom. 6. It is to be understood that none of the above provisions affect the liability of the Austrian Government under the Treaty of Peace in respect of the currency and rate of exchange at which monies shall be accredited through the Clearing Offices. No. I (ii). Dr. Renner to Mr. Bridgeman. Herr Geschäftsträger, Österreichisches Staatsamt für Äusseres. DIE königlich grossbritannische Regierung hat mit Note vom 27. August 1920* die Bedingungen bekanntgegeben, unter denen. * No. I (i). der dritte Abschnitt des X. Teiles des Staatsvertrages von SaintGermain samt Anhang im Verhältnis zwischen dem Vereinigten Königreiche, den britischen Kolonien und Protektoraten, mit Ausschluss von Ägypten, einerseits und der Republik Österreich andererseits, angewendet werden solle. Die Regierung der Republik Österreich nimmt diese Bedingungen mit dem Ausdrucke des Dankes an und erklärt alle Veranlassungen zu treffen, damit diese Bedingungen seitens der Republik Österreich und seitens ihrer Bürger hinsichtlich des Vereinigten Königreiches sowie Indien und Neuseeland, welche in der festgesetzten Frist ihren Beitritt erklärt haben, gehalten und vollzogen werden. Die österreichische Regierung gibt aber bei dieser Gelegenheit der Hoffnung Ausdruck, dass ihr und ihren Bürgern im Zuge der Abwicklung der privaten Vorkriegs-Schuldverhältnisse noch weitere Erleichterungen zugebilligt werden. Genehmigen, &c. Wien, am 2. Oktober 1920. (Translation.) Der Staatssekretär, M. le Chargé d'Affaires, Austrian State Department for By a note dated the 27th August, 1920, His Britannic Majesty's Government made known the conditions subject to which Section III and the Annex thereto of Part X of the Treaty of Saint-Germain between the United Kingdom and the British Colonies and Protectorates, with the exception of Egypt, on the one hand, and the Austrian Republic on the other hand, would be applied. The Government of the Austrian Republic accepts these conditions with an expression of thanks and declares that it will take the necessary steps to ensure their observance and execution by the Austrian Republic and its citizens in so far as the United Kingdom and India and New Zealand, which have notified their adhesion within the time appointed, are concerned. The Austrian Government, however, takes the opportunity of expressing the hope that still further facilities will be granted to it and to its citizens as regards the settlement of private pre-war debts. Accept, &c. Vienna, October 2, 1920. The Secretary of State, No. II (i). British Legation to Austrian Department of Foreign Affairs. WITH reference to the note verbale from the Federal Chancellery, Department for Foreign Affairs, of the 2nd July last, His Britannic Majesty's Legation has the honour to transmit herewith a Memorandum of Agreement concerning the settlement of arrears in indebtedness under the existing Anglo-Austrian Clearing Office Agreement, which has been drawn up as a result of discussions between the Administrator of Austrian Property on the one hand and Dr. Schenk, on behalf of the Austrian Government, on the other hand. His Majesty's Legation have the honour to notify the Austrian Government of the formal approval of His Majesty's Government of this Agreement, and at the same time to invite them to notify the Legation of their acceptance of it. British Legation, Vienna, Enclosure in No. II (i). Memorandum of Agreement. THE Austrian Government in discharge of its obligations under the British note of the 27th August, 1920, will, on the 31st December in each year commencing the 31st December, 1924, hand to the British Clearing Office two bills of the Austrian Treasury of £250,000 each, payable in London, falling due, the first on the 31st March and the second on the 30th September of the following year, to meet the half-yearly payments of £250,000 due on those dates. Such bills shall not be transferable by the British Clearing Office except for the purpose of collection. 2. In the event of the Austrian Clearing Office in any future year during the period between the payment of the bill maturing in September and the 31st December next following satisfying the British Clearing Office by adducing reliable figures that the final balance of the account between the two Clearing Offices will not be against Austria or will be less than the sum of £500,000, the delivery of further bills and making of further payments will not be required or will be reduced under the following proviso unless and until fresh circumstances should arise to modify the estimate of the British Clearing Office. Provided always that if the British Clearing Office shall be satisfied that the final balance against Austria will amount to a less sum than £500,000 the amount of the bills to be issued and payments to be made shall be reduced accordingly, such reduction up to £250,000 to be made in the amount of the bill maturing on the 30th September. Should the final account between the two Clearing Offices show that the payments effected by the Austrian Government under the British note and the present Agreement are in excess of the balance |