851R.50 C.C.N.A./99: Telegram

The Officer in Charge of Mission in Algeria ( Chapin ) to the Secretary of State

212. This is 1987, Treasury A–151. Reference BOC 1969.1

French have now made available to us details of program concerning Tunisian mortgage problem. As indicated in BOC 1969 outlines of this program are similar to those of French proposal described in our 1513 of 1 September 1943 with following changes:

(1)
Instead of being of indefinite maturity loans will fall due in 3 years. This time limit is set so that these loans will conform with the terms of loans granted under general war damage legislation. Refer BOC 1718.1 However, loans for relief of Tunisian mortgages may be extended by agreement between the Tunisian state and banks granting credits provided such agreement is reached 2 months before expiration date. This provision has practical effect of making loans of indefinite maturity and we believe this is French intention.
(2)
Service charges on loans will be borne not by Tunisian state but by Comité. Program has been accepted by Comité and is being forwarded to Tunisian authorities for approval and enactment. Complete description of proposal follows by airgram.2

Chapin
  1. Not printed.
  2. Not printed.
  3. Not found in Department files.