841D.51/163
The Minister in the Irish Free State (Sterling) to the Secretary of
State
Dublin, July 28,
1928.
[Received August 13.]
No. 112
Sir: I have the honor to refer to the
Department’s instruction No. 26 dated April 16, 1928, directing the
Legation to address a formal communication to the Government of the
Irish Free State on the subject of the so-called Irish Republic Loans
floated in the United States, in an endeavor to ascertain the official
attitude of the Government towards the American subscribers to these
loans.
Upon receipt of this instruction the Legation duly forwarded a note to
the Minister for External Affairs, and I now beg to transmit herewith a
copy, in triplicate, of the Minister’s reply.
I have [etc.]
[Enclosure]
The Irish Minister for External Affairs
(McGilligan) to the American
Minister (Sterling)
[Dublin,] 26 July,
1928.
SGM/MCK
Ref. E. A. 200/53
Excellency: I have the honor to refer to
Your Excellency’s note No. 63 of the 1st May, 1928, inquiring as to
the attitude of my Government towards the American subscribers to
the Dail Eireann External Loan 1920/21.
The Government of the Irish Free State has repeatedly acknowledged
its obligation to repay the Bond holders of the External Loan and
this view has not been modified as a result of the decision given by
the New York Supreme Court. The question at issue is accordingly
only one of the proper time and machinery to be adopted for the
repayment of the Loan.
My Government is satisfied that no action can be taken until the
Receivers in New York have distributed the assets they hold. As you
are aware, after examining the claims lodged with them, the
Receivers must report to the Court giving a list of the claims they
allow and the amount of the assets available to meet them when an
order for the distribution will be made. It would then be known what
proportion of the Bond holders are seeking repayment and to what
extent their claims are being met by the Receivers.
As regards the machinery to be adopted, a difficulty arises from the
method prescribed in the Dail Loans and Funds Act for calculation of
interest as the incomplete data in existence will not, in the
opinion of the Minister for Finance, allow him to ascertain the
individual dates of subscription in many cases. The Minister for [Page 97] Finance contemplates that a
short Bill will be necessary to amend the Dail Loans and Funds Act
to enable the procedure adopted in the case of the Internal Loan to
be followed in redeeming the External Loan. Consideration will also
have to be given to the question of altering the procedure
prescribed by the Act in regard to the intermediate issue of Stock
to be given to Bond holders in exchange for their Bonds.
Accept [etc.]
