To

The American Committee for Standstill Creditors of Germany.

The British Banking Committee for German Affairs.

The Swiss Banking Committee for the German Credit Agreement.

19th February, 1953.

Dear Sirs,

The German Credit Agreement of 1952

We refer to the statements which have been made by the Tripartite Commission on German Debts on behalf of the Governments represented thereon and by the German Delegation on behalf of the Government of the Federal Republic of Germany that their Governments are prepared by appropriate administrative action in Germany to permit the German Credit Agreement of 1952 (contained in Annex III to the Agreement on German External Debts and below referred to as “the 1952 Agreement”) to come into force on ratification of the Agreement on German External Debts by the Federal Republic of Germany, except that foreign currency payments provided for in the 1952 Agreement, other than those normally arising pursuant to Clause 5 thereof, shall be postponed until the Agreement on German External Debts (below referred to as the “Intergovernmental Agreement”) comes into force in accordance with Article 35 thereof.

We also refer to the forms of Adherence proposed to be exchanged conditionally between creditors and debtors under the 1952 Agreement in which reference is made (inter alia) to the postponement of foreign currency payments under that Agreement as mentioned above and the debtors agree that upon the 1952 Agreement becoming fully effective pursuant to the said Intergovernmental Agreement, they will make prompt payment to the creditors of all foreign currency payments under the 1952 Agreement which shall in the meantime have been postponed.

We hereby agree that the 1952 Agreement shall come into force upon compliance with the provisions of Clause 29 thereof and upon ratification of the said Intergovernmental Agreement by the Federal Republic of Germany, but shall cease to become effective if it is not included in the said Intergovernmental Agreement when the latter Agreement comes into force. Accordingly Clause 2 of the 1952 Agreement shall be read as if the date when compliance shall have been made with Clause 29 of that Agreement and when ratification of the Intergovernmental Agreement shall have been made by the Federal Republic of Germany were inserted therein as the date upon which the provisions of the 1952 Agreement shall come into force.

We further agree that, if the 1952 Agreement is included in the said Intergovernmental Agreement when the latter Agreement comes into force in accordance with Article 35 thereof, we will do all such things as are within our respective powers to enable prompt payment to be made to the creditors of all foreign currency payments under the 1952 Agreement which shall in the meantime have been postponed.

We confirm that, by agreement between the parties to the 1952 Agreement, the following amendments are to be made to the text of that Agreement as contained in Appendix 5 to the Final Report of the Conference on German External Debts and are to be incorporated in the Agreement in the form in which it is signed, viz:

Paragraph (7) of Preamble. The words “Government of the Federal Republic or other appropriate authority” to be substituted by the words “appropriate governmental authorities in the Federal Republic of Germany and the Western Sectors of Berlin.”

The word “and” to be inserted at the end of sub-paragraph (ii) and the same word to be deleted at the end of sub-paragraph (iii).

Sub-paragraph (iv) to be preceded by the words “and shall ensure as far as possible that”.

Clause 1: Definitions. The words “and relates to the identification of territory and not to governmental jurisdiction” to be added at the end of the definition of “Federal Republic”.

Clause 20: Arbitration. In sub-Clause (1) the words “who have adhered to this Agreement” to be inserted after the words “German Debtors”.

Clause 22: Adherence. In sub-Clause (1) the words “confirming his adherence” to be deleted and the words “confirming his adherence to this Agreement and (if the creditor so requests) agreeing that he will adhere to any renewal or extension thereof that may be signed by the German Committee and the Bank deutscher Länder” to be inserted at the end of the second sentence of that sub-Clause.

We, the undersigned German Committee, hereby consent, in accordance with Clause 22 (4) of the 1952 Agreement, to your Committee's extending the time within which any one or more foreign bank creditors in your respective countries may adhere to the 1952 Agreement to enable such adherence to be made at any time within two months of the said Intergovernmental Agreement coming into force.

Yours faithfully,

(signed)

For and on behalf of the German

Committee for Standstill Debts.

(signed)

For and on behalf of the Bank

deutscher Länder.

To:

The German Committee for Standstill Debts.

The Bank deutscher Länder.

20th February, 1953.

Dear Sirs,

The German Credit Agreement of 1952

We acknowledge receipt of your letter with regard to the arrangements for the bringing into force of the above Agreement and the temporary postponement of payment to the creditors of foreign currency payments provided for in that Agreement, other than those normally arising pursuant to Clause 5 thereof, and hereby confirm our acceptance of the terms and conditions set out in your letter.

In particular we agree

(a) that the 1952 Agreement shall come into force upon compliance with the provisions of Clause 29 thereof and upon ratification of the Agreement on German External Debts (below referred to as the “Intergovernmental Agreement”) by the Federal Republic of Germany but shall cease to become effective if it is not included in the said Intergovernmental Agreement when the latter Agreement comes into force;

(b) that all foreign currency payments provided for in the 1952 Agreement, other than those normally arising pursuant to Clause 5 thereof, shall be postponed until the Intergovernmental Agreement comes into force in accordance with Article 35 thereof; and

(c) that the amendments to the text of the 1952 Agreement set out in your letter are to be incorporated in the Agreement in the form in which it is signed.

This letter may be executed in several counterparts which taken together will constitute one and the same instrument.

Yours faithfully,

(signed)

For and on behalf of the American

Committee for Standstill Creditors

of Germany.

(signed)

For and on behalf of the British

Banking Committee for German

Affairs

(signed)

For and on behalf of the Swiss Bank-

ing Committee for the German Credit

Agreement.