Page:United States Statutes at Large Volume 60 Part 2.djvu/752

 1842 INTERNATIONAL AGREEMENTS OTHER THAN TREATIES [60 STAT. (ii) The Government of the United Kingdom may accelerate repayment of the amount drawn under this line of credit. 5. Waiver of interest payments. In any year in which the Govern- ment of the United Kingdom requests the Government of the United States to waive the amount of the interest due in the installment of that year, the Government of the United States will grant the waiver if: (a) the Government of the United Kingdom finds that a waiver is necessary in view of the present and prospective conditions of international exchange and the level of its gold and foreign exchange reserves and (b) the International Monetary Fund certifies that the income of the United Kingdom from home-produced exports plus its net income from invisible current transactions in its balance of payments was on the average over the five preceding calendar years less than the average annual amount of United Kingdom imports during 1936-8, fixed at £866 million, as such figure may be adjusted for changes in the price level of these imports. Any amount in excess of £43,750,000 released or paid in any year on account of sterling balances accumulated to the credit of overseas governments, monetary authorities and banks before the effective date of this Agreement shall be regarded as a capital transaction and therefore shall not be included in the above calculation of the net income from invisible current transactions for that year. If waiver is requested for an interest payment prior to that due in 1955, the average income shall be computed for the calendar years from 1950 through the year preceding that in which the request is made. 6. Relation of this line of credit to other obligations. (i) It is understood that any amounts required to discharge obliga- tions of the United Kingdom to third countries outstanding on the effective date of this Agreement will be found from resources other than this line of credit. (ii) The Government of the United Kingdom will not arrange any long-term loans from governments within the British Commonwealth after December 6, 1945, and before the end of 1951 on terms more favorable to the lender than the terms of this line of credit. (iii) Waiver of interest will not be requested or allowed under section 5 in any year unless the aggregate of the releases or payments in that year of sterling balances accumulated to the credit of over- seas governments, monetary authorities and banks (except in the case of colonial dependencies) before the effective date of this Agree- ment is reduced proportionately, and unless interest payments due in that year on loans referred to in (ii) above are waived. The propor- tionate reduction of the releases or payments of sterling balances shall be calculated in relation to the aggregate released and paid in the most recent year in which waiver of interest was not requested. (iv) The application of the principles set forth in this section shall be the subject of full consultation between the two governments as occasion may arise.

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