File No. 861.51/317
[Subenclosure]
The Russian Ambassador (Bakhmeteff) to the
National City Bank of New
York
Washington, April 30, 1918.
Dear Sirs: Referring to the dollar
notes of the Russian Government, aggregating $11,000,000, held
in this country, maturing on May 1, 1918, I propose that these
notes shall not be presented for payment until May 1, 1919,
except for the sanction of the Department of State of the United
States or at the request of the Russian Government. In
consideration of the compliance with this proposal by the
holders of all the said notes, I hereby agree that the Russian
Government will pay interest on the said notes at the rate of 6
per cent per annum, semiannually, on November 1, 1918, and on
May 1, 1919, without, however, any commission. The amount of the
said interest, $660,000, shall be forthwith paid to you by Mr.
Ughet, financial
attaché, and, upon acceptance of my proposal by the holders of
all said notes shall be held by you in a special account and
paid out by you at the times above stated, to the holders of the
said notes, without further authorization from me. Should,
however, the said dollar notes be paid in full before May 1,
1919, the interest thereon shall be paid at the said rate up to
the time of such payment on the principal; and the balance of
said sum of $660,000 shall be forthwith paid by you to me. On
the balance of the said sum of $660,000 at any time remaining
with you, interest is to be allowed at the rate of 2 per cent
per annum.
In further consideration of the compliance with my proposal by
the holders of all the said notes, I hereby pledge to you, as
collateral security for the said notes, the Interior War Loan
ruble notes of the Imperial Russian Government, issue of 1916,
aggregating an amount of 147,050,000 rubles, which are now on
deposit with you, subject to my order or to the order of my
financial attaché. The said notes shall be held by you as
pledgee, in trust for the
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equal benefit, pro rata, of the
holders, from time to time, of the said $11,000,000 of dollar
notes. In case the said dollar notes shall not be paid in full,
with interest on May 1, 1919, you shall have the right to
dispose of the said collateral in any legal manner agreeable to
the Department of State of the. United States. In such case, the
overplus, if any, of the proceeds above the amount of the said
dollar notes and interest, shall be returned to me; and the.
Russian Government shall remain liable pro
rata to the holders of the said notes, for any
deficiency arising from such disposition.
Should the said dollar notes be paid on or before May 1, 1919,
the ruble notes, so pledged as security, shall be returned.
This proposal is dependent upon its acceptance by the holders of
all the said dollar notes and upon the presentation of all of
such notes at your office for the purpose of stamping thereon in
the presence of my financial attaché or his representative the
following:
This note is not [to] be presented for payment until May
1, 1919, except by consent of the State Department of
the United States or at the request of the Russian
Government.
Yours very truly,