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The Ministry for Foreign Affairs to the American Consulate

MINISTÈRE DES AFFAIRES

ETRANGÈRES

991-W

TALLINN, July 28th, 1925

With reference to the memorandum of the American Consulate of June 15th last relative to the abolishment of visa fees in favor of non-immigrants, the Ministry of Foreign Affairs has the honour to inform the American Consulate that the Esthonian Government agree on a basis of reciprocity to accept the proposal made in the note of the American Legation at Riga of April 8th 1925.

AMERICAN CONSULATE,

Tallinn.

DEBT FUNDING

Agreement signed at Washington October 28, 1925
Operative from December 15, 1922

Approved by Estonia March 26, 1926

Approved by Act of Congress of April 30, 1926 1
Modified by agreement of June 11, 1932 2

1

Treasury Department print

AGREEMENT, Made the twenty-eighth day of October, 1925, at the City of Washington, District of Columbia, between THe Republic of ESTHONIA, hereinafter called ESTHONIA, party of the first part, and THE United STATES OF AMERICA, hereinafter called the UNITED STATES, party of the second part.

WHEREAS, Esthonia is indebted to the United States as of December 15, 1922, upon obligations in the aggregate principal amount of $13,999,145.60, together with interest accrued and unpaid thereon; and

WHEREAS, Esthonia desires to fund said indebtedness to the United States, both principal and interest, through the issue of bonds to the United States, and the United States is prepared to accept bonds from Esthonia upon the terms and conditions hereinafter set forth;

Now, therefore, in consideration of the premises and of the mutual covenants herein contained, it is agreed as follows:

1. Amount of Indebtedness. The amount of the indebtedness to be funded, after allowing for cash payments made or to be made by Esthonia and the credit set out below, is $13,830,000, which has been computed as follows:

Principal amount of obligations to be funded

Credit allowed for total loss of cargo on sinking of S. S. JOHN
RUSS sunk by a mine in Baltic Sea

Interest accrued and unpaid thereon to December 15, 1922, at the rate of 44 per cent a year

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Total principal and interest accrued and unpaid as of December 15, 1922

To be paid in cash by Esthonia upon execution of Agree

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$13, 999, 145. 60

1, 932, 923. 45 $12, 066, 222. 15 1,765, 219.73

$13, 831, 441.88

1, 441. 88

$13, 830, 000. 00

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2. Repayment of Principal. In order to provide for the repayment of the indebtedness thus to be funded Esthonia will issue to the United States at par as of December 15, 1922, bonds of Esthonia in the aggregate principal amount of $13,830,000, dated December 15, 1922, and maturing serially on each December 15 in the succeeding years for 62 years, in the amounts and on the several dates fixed in the following schedule:

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PROVIDED HOWEVER, That Esthonia, at its option, upon not less than ninety days' advance notice to the United States, may postpone any payment falling due as hereinabove provided, except those falling due on or before December 15, 1930, hereinafter referred to in paragraph 5 of this Agreement, to any subsequent June 15 or December 15 not more than two years distant from its due date, but only on condition that in case Esthonia shall at any time exercise this option as to any payment of principal, the payment falling due in the next succeeding year can not be postponed to any date more than one year distant from the date when it becomes due unless and until the payment previously postponed shall actually have been made, and the payment falling due in the second succeeding year can not be postponed at all unless and until the payment of principal due two years previous thereto shall actually have been made.

3. Form of Bond. All bonds issued or to be issued hereunder to the

United States shall be payable to the Government of the United States of America, or order, shall be issued in such denominations as may be requested by the Secretary of the Treasury of the United States, substantially in the form set forth in the exhibit hereto annexed and marked "Exhibit A", and shall be signed for Esthonia by its Envoy Extraordinary and Minister Plenipotentiary at Washington, or by its other duly authorized representative. The $13,830,000 principal amount of bonds first to be issued hereunder shall be issued in 62 pieces, in denominations and with maturities corresponding to the annual payments of principal hereinabove set forth.

4. Payment of Interest. All bonds issued or to be issued hereunder shall bear interest, payable semiannually on June 15 and December 15 in each year, at the rate of 3 per cent a year from December 15, 1922, to December 15, 1932, and thereafter at the rate of 32 per cent a year until the principal thereof shall have been paid.

5. Method of Payment. All bonds issued or to be issued hereunder shall be payable, as to both principal and interest, in United States gold coin of the present standard of value, or, at the option of Esthonia, upon not less than thirty days' advance notice to the United States, in any obligations of the United States issued after April 6, 1917, to be taken at par and accrued interest to the date of payment hereunder: PROVIDED, HOWEVER, that with reference to the payments on account of principal and/or interest falling due hereunder on or before December 15, 1930, Esthonia, at its option, may pay the following amounts on the dates specified:

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and the balance, including interest on all overdue payments at the rate of 3 per cent a year from their respective due dates, in bonds of Esthonia dated December 15, 1930, bearing interest at the rate of 3 per cent a year from December 15, 1930, to December 15, 1932, and thereafter at the rate of 31⁄2 per cent a year until the principal thereof shall have been paid, such bonds to mature serially on December 15 of each year up to and including December 15, 1984, substantially in the manner provided in paragraph 2 of this Agreement, and to be substantially similar in other respects to the bonds first to be issued hereunder.

All payments, whether in cash or in obligations of the United States, to be made by Esthonia on account of the principal of or interest on any bonds issued or to be issued hereunder and held by the United States, shall be made at the Treasury of the United States in Washington, or, at the option of the Secretary of the Treasury of the United States, at the Federal Reserve Bank of New York, and if in cash shall be made in funds immediately available on the date of payment, or if in obligations of the United States shall be in

form acceptable to the Secretary of the Treasury of the United States under the general regulations of the Treasury Department governing transactions in United States obligations.

6. Exemption from Taxation. The principal and interest of all bonds issued or to be issued hereunder shall be paid without deduction for, and shall be exempt from, any and all taxes or other public dues, present or future, imposed by or under authority of Esthonia or any political or local taxing authority within the Republic of Esthonia, whenever, so long as, and to the extent that beneficial ownership is in (a) the Government of the United States, (b) a person, firm, or association neither domiciled nor ordinarily resident in Esthonia, or (c) a corporation not organized under the laws of Esthonia.

7. Payments before Maturity. Esthonia, at its option, on any interest date or dates, upon not less than ninety days' advance notice to the United States, may make advance payments in amounts of $1,000 or multiples thereof, on account of the principal of any bonds issued or to be issued hereunder and held by the United States. Any such advance payments shall first be applied to the principal of any bonds which shall have been issued hereunder on account of principal and/or interest accruing between December 15, 1922, and December 15, 1930, and then to the principal of any other bonds issued hereunder and held by the United States, as may be indicated by Esthonia at the time of the payment.

8. Exchange for Marketable Obligations. Esthonia will issue to the United States at any time, or from time to time, at the request of the Secretary of the Treasury of the United States, in exchange for any or all of the bonds issued or to be issued hereunder and held by the United States, definitive engraved bonds in form suitable for sale to the public, in such amounts and denominations as the Secretary of the Treasury of the United States may request, in bearer form, with provision for registration as to principal, and/ or in fully registered form, and otherwise on the same terms and conditions, as to dates of issue and maturity, rate or rates of interest, exemption from taxation, payment in obligations of the United States issued after April 6, 1917, and the like, as the bonds surrendered on such exchange. Esthonia will deliver definitive engraved bonds to the United States in accordance herewith within six months of receiving notice of any such request from the Secretary of the Treasury of the United States, and pending the delivery of the definitive engraved bonds will deliver, at the request of the Secretary of the Treasury of the United States, temporary bonds or interim receipts in form satisfactory to the Secretary of the Treasury of the United States within thirty days of the receipt of such request, all without expense to the United States. The United States, before offering any such bonds or interim receipts for sale in Esthonia, will first offer them to Esthonia for purchase at par and accrued interest, and Esthonia shall likewise have the option, in lieu of issuing any such bonds or interim receipts, to make advance redemption, at par

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