AGREEMENT REACHED BY U. S.,U. K TO SETTLE JAPAN DEBTS
Kyodo-UP
LONDON, Sept. 28-Under the Anglo-Japanese debt agreement just reached in New York, Japan recognized a total Government-or Government-garanteed-sterling debt of ￡58,608,000 sterling, plus four small municipal loans which bring up to ￡61,070,000 sterling.
Repayment in full is promised on the original redemption date in the case of Government issues, ranged from 1947 to 1950,and in the case of four small municipal loans from 1943 to 1981. Arrears of interest amount to ￡33,930,000 sterling.
The largest single Japanese loan is the 5 per cents of 1907, of which the amount outstanding is ￡17,909,000 sterling, followed by the 6 per cents of 1924 amounting to ￡10,498,000 sterling.
Following is the text of an annoucement entitled "Japanese External Debt."
The Council of Foreign Bondholders are authorized by the Japanese Government represented by Juichi Tsushima, adviser of the Ministry of Finance and head of the Japanese debt delegation, to announce that as the result of negotiations in New York between the Japanese debt delegation and representatives of the Council of Foreign Bondholders, the Foreign Bondholders' Protective Council, Incorporated, New York, and the Association Nationalendles rorteurs Francais de Valeurs Mobiliers, the Japanese Government undertakes before the first of December 1952, to make an offer to holders of its exernal sterling and dollar bonded debt conforming as closely as possible to original contractual terms.
Until further announcement no action need be taken by bondholders.
Further negotiations are reguired with respect to reach frans bonis and negotiations will be continued in the ▣...▣ture.

 

Summary of Offer

Following is the summary on the offer to be take to Holders of outstanding sterling ▣onis which is on to the offer to holders of dollar bonds.
1. All interest for the just and futher will be at the contractual interest rates.
2. Coupons due before the 2nd of December, 1942, and coupons due on or after the 26th of September, 1952, and before the 2nd of December, 1952, will be payable on the 22nd of December,1952.
3. The dates for the payment of coupons due on or after the 22nd of December, 1942, and before the 26th of September, 1952, will be postpond for an exact period of 10 years.
4. Coupons due on or after the 22nd of December 1952, will be paid on their due dates.
5. In case of loans containing a currency option entitling the holder at his option to receive payment in some currency other than the currency of the issue, the question as to whether and when this obligation is to be fulfilled in alternative currencies provided in the loan contract is to be discussed as soon as can be arranged between the Government of Japan and her Majesty's Government.
Without prejudice to any agreement which is taus to be reached between the two Government as to the currency of payment, currency options will be recognized by payment of the full sterling equivalent of an alternative no currency.
6. The contractual maturity dates of all loans which contain nocurrency option will be extended 10 years and in case of all loans containing either a fixed or ________▣...▣ the extension will be 15 years.
7. Herethere are ▣...▣ funds those will be renewed in accordance with the original Contracts us ▣▣ 1953 with adjustancs to give effect to the reduced amount of bonds new outbonding as the result of conversion of Japanese-held bonds into bonds.
8. ▣jability for bonds issued by cities and corporate bodies has been fully assumed by the Japanese Government and the cities and contract bodies have been relieved of liabilities, and liens and charges on the properties have been eliminated.
9. The Bank of Tokyo will succeed the Yokohama Special Bank as the paying agent in all cases where the latter was formerly the paying agent in all other cases the existin paying agents will remain.
The Council of Foreign Bondholders are convinced these terms are the best obtainable and have applied to the exchange control for authorization for bondholders in this country to accept the offer when made.
Meanwhile, as stated above, no action is from bondholders.