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254 (3) Similar arrangements shall apply as regards the investment of amounts in guilders held by the Bank of England in excess of 38 million guilders. These amounts shall be applied to the purchase of Treasury Bills of the Netherlands Indies Government, to be denominated in pounds sterling calculated at the official guilder-sterling rate of the day of purchase, and to be issued in amounts of pounds sterling equivalent to 350,000 guilders or multiples thereof.

(4) Both the guilder and the sterling Bills shall bear interest at 3% per annum and shall be repayable one year after the conclusion of the war: provided that the issuing Government may, at its option, ask for their renewal for two further periods of one year each.

(5) Should the total amount of the pounds sterling or guilders held by the Javasche Bank or the Bank of England respectively fall below £5 million or 38 million guilders such balance shall be reconstituted as far as possible by the sale of Treasury Bills held in the other currency. For this purpose the guilder Treasury Bills shall be repurchased for sterling by the Bank of England and the sterling Treasury Bills for guilders by the Javasche Bank, both Central Banks acting for account of their respective Governments. These operations shall be effected at the official rate of the day of repurchase.

(6) The pounds sterling and the guilders held by the Javasche Bank and the Bank of England respectively up to the limit of £5 million and 38 million guilders shall be invested by either Central Bank in agreement with and through the other Central Bank.

(7) Should the Treasury Bills purchased by the Javasche Bank in accordance with paragraph (2) of this Article exceed the equivalent of £5 millions in any one year, the Javasche Bank is authorised to sell the excess of such Bills to the Netherlands Government in its capacity as owner of the claims transferred to it under the Royal Decree dated 24th May, 1940, in so far as these claims are denominated in guilders as ‘defined by this Agreement, in order to enable the Government to cover its liabilities to the owner. Bills so sold to the Netherlands Government will not be repurchasable under paragraph (5) of this Article and the first amount of Bills so sold to the equivalent of £5 millions in any one year will be exempted from renewal under paragraph (4) of this Article.

Article 5 (1) Neither Government will ask for a gold security nor for any specific security for the currency obtained by the Bank of England or the Javasche

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