800.51W89 Hungary/92
The Hungarian Chargé (De Végh) to the Secretary of State
Sir: I am referring to Count Széchényi’s Aide-Mémoire of November 1, 1932,10 and to my note of May 29, 1933, No. 296/Res, relative to the funded indebtedness of the Government of Hungary to the Government of the United States. I now have the honor, upon instructions from my Government, to bring the following to your attention:
The Hungarian Government has caused two Treasury Certificates (Bon du Trésor) to be issued and deposited to the Foreign Creditors’ Account at the Hungarian National Bank, viz:
- 1.
- Serial III, No. 17, amounting to 233,787 pengös being the equivalent of $40,729.35 at the rate of $1=P. 5.74 representing the payment of principal and semi-annual interest which was due on December 15, 1932, and
- 2.
- Serial III, No. 77, amounting to 135,366 pengös being the equivalent of $28,260.08 at the rate of $1=P. 4.79 representing the semiannual interest due on June 15, 1933.
The Treasury Certificates bear earned interest at the rate of four per centum per annum and the date of their maturity for the time being [Page 885] has been fixed to correspond with that of the staying in force of the transfer moratorium, that is, December 23, 1933.
My Government wishes to point out that the depositing of the Treasury Certificates serves solely as a means of giving security and has no bearing upon the rights of the creditors in regard to the amount of their claim.
My Government desires at the same time to advise the Government of the United States that since, in accordance with the Governmental Declaration of July 15, 1933, issued on the ground of the negotiations with the Loan Committee of the League of Nations in London in connection with the service of the State Loan of 1924 of the Kingdom of Hungary, the non-transferable pengö amounts may be loaned for budgetary purposes against Treasury Certificates bearing interest at the rate of two per centum per annum, therefore, on the basis of equal treatment, beginning with July, 1933, in place of the pengö amounts payable into the Foreign Creditors’ Account, Treasury Certificates bearing earned interest at this rate (two per centum per annum) will be issued.
Accept [etc.]