-4-                             
 
 
of American investment in Germany as a figure 
comparable with the amounts of private invest-
ment. The amount of the Reichsmark obligations 
was originally established by converting dollar 
amounts into Reichsmarks at 23.8 cents. When the 
Reichsmark amounts are converted back into dollars 
at the current exchange rate of 40.33 cents, the 
1,015,005,077.36 total indebtedness for costs of 
the American Army of Occupation is equal to 
$409,351,547.70 and the 2,087,940,000 Reichsmark 
indebtedness for mixed claims awards is equal to 
$842,066,202, these amounts being about 69 percent 
greater than the dollars which would have been 
payable had the dollax not subsequently been de-
valuated. The debt agreement provides that the 
obligations of Germany to pay annuities on mixed 
claims awards "shall cease as soon as all of the 
payments contemplated by the Settlement of War 
Claims Act of 1928 have been completed and the 
bonds not then matured evidencing such obligations 
shall be canceled and returned to Germany". The balance-
due payment for mixed claims awards as of Sep-
tember 30, 1938 is only $157,697,841.57, but the 
awards are interest-beaxing and a few new awards 
may still be made so that the amount eventually 
payable cannot now be determined. Moreover, 
as the German Government bonds held hy the United 
States Treasury are non-interest-bearing until 
the respective bond has become due and has been 
defaulted, the amount of the bonds, being a sum 
of annuities payable over a long period of future 
years, is not directly comparable to the figures 
for private investments For all these reasons,
although the Treasury must list among its assets 
Reichsmark bonds of the German Government equiv-
alent to about $1,250,000,000 par value at current 
rates of exchange, a tabulation listing this amount 
in the same column with $713,000,000 of private 
investments would give a distorted picture.
 
 
5. The bonds of the Austrian relief debt are
also non-interest-bearing annuities, the accrued 
unpaid interest of $25,000.33 having been incurred 
only by virtue of the Hoover Moratorium arrangements.
 
 
6.  SEE ORIGINAL