338. Editorial Note
On May 11, the Turkish Government and representatives of 13 European nations signed at Paris an agreement for the repayment of outstanding Turkish commercial debts. Under the terms of the agreement, Turkish repayments for debts incurred prior to August 5, 1958, were to be repay ed at an annual rate of interest of 3 percent until January 1, 1964. Beginning on January 1, 1964, the payments schedule would be revised and remaining creditors would receive 1/7 of the outstanding amount due to them until 1970 when the debt would be liquidated. Simultaneously, the Turkish Government would liquidate its outstanding debts to U.S. firms. The plan for the debt settlement and its application to U.S. firms was outlined for Acting Secretary of State Herter in a memorandum from Rountree, June 4. (Department of State, Central Files, 882.10/6–459)