61 STAT.] ITALY-FINANCIAL AND ECONOMIC RELATIONS-AUG. 14 ,1947 the Italian Credit Institute for Public Utility Enterprises and of eleven public utility corporations. New bonds will be issued in an amount equal to the principal of the old bonds plus all arrears thereof at the former rates to January 1, 1947. The new bonds to be issued in exchange for the Kingdom of Italy bonds will be issued by the Republic, while those issued in ex- change of the old bonds in the second and third groups will be bonds of the Consortium and the Institute respectively, in each case guaran- teed as to principal and interest by the Republic. The new bonds in all three groups are expected to bear interest at 1% for 1947, 1948 and 1949; 2% for 1950 and 1951; and 3% beginning 1952. The first installment of interest on the new bonds will be paid in cash at the time of exchange. Commencing in January 1952 the three issues of bonds will be entitled to a cumulative sinking fund of 1% per annum for 1952 to 1956 inclusive and 2% per annum beginning in 1957. It is expected that the full details of the plan will be made public and the offer to the old bond holders will be made in the near future, as soon as the necessary registration under the Security Act of 1933 and other arrangements are completed. There is enclosed herewith for your information additional details concerning the proposed plan. Accept, Sir, the renewed assurances of my highest consideration. LOMBARDO Chief of the Italian Economic and FinancialDelegation Enclosure: Italian Dollar Bond Tabulation. The Honorable ROBERT A. LOVETT, Acting Secretary of State. ITALIAN DOLLAR BONDS There are presently outstanding approximately $108,000,000 of nonrepatriated Italian dollar bonds on which service was suspended on June 10, 1940, and it is the desire of the Government of Italy to make an adjustment with respect thereto. These obligations fall into three categories: first, bonds issued by the Government of Italy; second, bonds issued by the Cities of Rome and Milan and by the Italian Credit Consortium for Public Works, and the Mortgage Bank of the Venetian Provinces; and third, various corporate obligations. In connection with formulating an adjustment of Italian dollar bonds, it has been considered advisable to issue three types of obligations-one a direct obligation of the Government of Italy, to be issued in exchange for bonds falling within the first cat- egory and the other two being obligations of semi-governmental agencies, guaranteed as to principal and interest by the Government of Italy, to be issued in exchange for bonds falling within the second and third categories. 95347 0 -50-PT-. v---41 3981
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