800.51W89 Finland/81
The Department of State
to the Finnish Legation
Aide-Mémoire
The Treasury Department has been studying suggested bases for
readjustment of the indebtedness of Finland to the United States,
and has drafted calculations (attached) of the new principal
indebtedness which would result by retroactive application as nearly
as possible of the bases employed in the case of the indebtedness of
Italy to the United States.
The Treasury table carries the principal payments which have actually
been made by Finland. Like the settlement with Italy, it charges no
interest during the first five years, and one-eighth percent
interest thereafter to date. Subtracting the excess interest
actually paid over what would have been paid on this basis leaves a
new principal amount of $5,854,903.25 as of December 15, 1933.
The Treasury statement also includes possible plans for the repayment
of this principal amount, namely: If paid in thirty years without
interest, equal annual payments of $195,163.44; if in forty years at
1% interest, $178,313.77; if in fifty years at 1½% interest,
$167,285.30.
If the Finnish Government indicates that it is prepared to accept an
agreement on any one of these three bases for future payments, the
President has authorized the preparation of a form of agreement
which he would submit to the Congress with a request for authority
to execute it.
Washington
, January 6, 1934.
[Page 561]
[Annex]
Statement Showing (1) Payments Which Would Liquidate the Debt of
Finland to the United States on the Bases Indicated, With
Principal Payments to December 15, 1933, in the Amounts Required Under the Funding
Agreement of May 1, 1923, and With
Interest After the Fifth Year at 1/8% per Annum (Without Giving Effect to Moratorium); (2) The Amount Actually Paid and to be Paid by
Finland to and Including December 15, 1933, Under the Funding Agreement of May 1,
1923; (3) The Amount of Interest Paid in
Excess of Amount Payable on Basis Indicated; (4) The Amount of Excess Payments Applied to
Reduce the Principal of the Debt.
|
Unpaid Principal |
Annual Principal Payments |
Annual Interest Payments |
Rate of Interest |
Total Annual Payments |
Calendar Year |
Payments Actually Made |
Excess
Payments |
| Funded at |
$9,000,000 |
$45,000 |
$ |
|
$45,000 |
1923 |
$315,000 |
$270,000 |
|
8,955,000 |
45,000 |
|
|
45,000 |
1924 |
313,650 |
268,650 |
|
8,910,000 |
47,000 |
|
|
47,000 |
1925 |
314,300 |
267,300 |
|
8,863,000 |
49,000 |
|
|
49,000 |
1926 |
314,890 |
265,890 |
|
8,814,000 |
50,000 |
|
|
50,000 |
1927 |
314,420 |
264,420 |
|
8,764,000 |
52,000 |
10,955 |
1/8% |
62,955 |
1928 |
314,920 |
251,965 |
|
8,712,000 |
53,000 |
10,890 |
“ |
63,890 |
1929 |
314,360 |
250,470 |
|
8,659,000 |
55,000 |
10,823.75 |
“ |
65,823.75 |
1930 |
314,770 |
248,946.25 |
|
8,604,000 |
55,000 |
10,755 |
“ |
65,755 |
1931 |
129,060 |
63,305 |
|
8,549,000 |
58,000 |
10,686.25 |
“ |
68,686.25 |
1932 |
186,235 |
117,548.75 |
|
8,491,000 |
62,000 |
10,613.75 |
“ |
72,613.75 |
1933 |
*378,215.50 |
305,601.75 |
|
|
$571,000 |
$64,723.75 |
|
$635,723.75 |
|
$3,209,820.50 |
$2,574,096.75 |
|
8,429,000 |
2,574,096.75 |
|
|
2,574,096.75 |
|
|
|
| Balance due 12/15/33 |
5,854,903.25 |
|
|
|
|
|
|
|
|
Annual Payment |
Total payments to be received |
Total Amount to
be received |
|
|
Principal |
Interest |
|
| If paid in 30
years—no interest |
$195,163.44 |
$5,854,903.25 |
$ |
$5,854,903.25 |
| If paid in 40
years—1% interest |
178,313.77 |
5,854,903.25 |
1,277,647.55 |
7,132,550.80 |
| If
paid in 50 years—1½% interest |
167,285.30 |
5,854,903.25 |
2,509,361.75 |
8,364,265.00 |
