800.51 W 89France/292: Telegram
The Secretary of State to the Ambassador in France (Herrick)
108. For your own information only. Debt agreement reached today providing for settlement of total debt amounting to $4,025,000,000, of which $3,340,000 represents principal and remainder interest accrued at four and one fourth percent to December 15, 1922, and three percent thereafter to June 15, 1925. Agreement provides for annuities commencing with $30,000,000 in the first year and reaching $125,000,000 in the seventeenth, and thereafter at latter figure to the sixty-second year. No interest for 5 years; one percent for next 10 years; two percent succeeding 10 years; two and one half percent succeeding 8 years; three percent succeeding 7 years, and three and one half percent for remaining 22 years. Present value calculated at four and one fourth percent is approximately $2,000,000,000, or fifty percent of debt funded. Settlement contains no safeguard clause.