800.51W89 Estonia/65: Telegram

The Chargé in Estonia (Carlson) to the Secretary of State

2. With reference to the Department’s telegrams May 16, 11 a.m., and May 26, 6 p.m., Foreign Minister gave me today counterproposal of Esthonian Government, summary of which follows:

“In view of, first, more difficult conditions in the proposed postponement legalization agreement than in the original debt funding agreement and second, because of the acute economic crisis, the Esthonian Government requests that the proposed legalization agreement be altered so that payments would be distributed over a period of 52 years, from 1933 to 1984, and that the rate of interest be reduced from 4 to 3½ percent to correspond with the terms of original debt funding agreement, as is the case with the British postponed debt repayment proposal.”

Mail report follows.

Carlson