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PRESS RELEASE April 4, 1960

World Bank Plans for Resumption of Payment on the Bonds of the French Tranche of the 1912 Loan of Tokyo

The International Bank for Reconstruction and Development announced today that Mr. Eugene R. Black delivered in Washington, D. C. to the representatives of the Metropolis of Tokyo and to the representatives of the Masse des Porteurs d'Obligations de l'Emprunt 5% 1912 de la Ville de Tokyo (Holders of Bonds of the 5% 1912 Loan of the City of Tokyo) a Plan for the resumption of payment of principal and interest on the bonds of the French Tranche of the 5% 1912 Loan of the City of Tokyo. Service of the bonds has been suspended since 1928.

In 1958 the parties entered into a Conciliation Agreement and pursuant to that agreement asked Mr. Black, in a personal capacity, to draft a concrete and workable plan for settling in a fair and feasible manner the controversy between the parties.

The Plan delivered to the parties proposes payment by the Metropolis of Tokyo of the sum of NF (New Francs) 252.57 having a gold content of 0.18000 grams per franc for each 500-franc bond with all coupons matured since 1928 attached thereto, calculated as of March 1, 1960.

Payment would be made either in one lump sum on March 1, 1961 or, at the option of the Metropolis, in three equal installments on March 1, 1961, March 1, 1962 and March 1, 1963; in either case interest at the rate of 5% per annum would be added on unpaid amounts from March 1, 1960 to the date of actual payment.

Mr. Black bas had no indication from either side as to whether the Plan is acceptable.

The Conciliation Agreement provides that the parties, although not legally bound by Mr. Black's Plan, shall attach the greatest importance to it and shall indicate within three months what effect they intend to give to the Plan.

Copies of Mr. Black's opinion are available at the Washington, New York and Paris Offices of the International Bank for Reconstruction and Development.

 


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