DEBT FUNDING

Agreement signed at Washington May 27, 1932, modifying agreement of April 25, 1924

Operative from July 1, 1931

Revived (after World War II) March 9, 1948, pursuant to article 10 of treaty of peace signed at Paris February 10, 1947 2

Treasury Department print

AGREEMENT

Made the 27th day of May, 1932, at the City of Washington, District of Columbia, between the GOVERNMENT OF THE KINGDOM OF HUNGARY, hereinafter called HUNGARY, party of the first part, and the GOVERNMENT OF THE UNITED STATES OF AMERICA, hereinafter called the UNITED STATES, party of the second part.

WHEREAS, under the terms of the debt funding agreement between Hungary and the United States, dated April 25, 1924, there is payable by Hungary to the United States during the fiscal year beginning July 1, 1931 and ending June 30, 1932, in respect of the bonded indebtedness of Hungary to the United States, the aggregate amount of $69,342.75, including principal and interest; and

WHEREAS, a Joint Resolution of the Congress of the United States, approved December 23, 1931, authorizes the Secretary of the Treasury, with the approval of the President, to make on behalf of the United States an agreement with Hungary on the terms hereinafter set forth, to postpone the payment of the amount payable by Hungary to the United States during such year in respect of its bonded indebtedness to the United States;

Now, THEREFORE, in consideration of the premises and of the mutual covenants herein contained, it is agreed as follows:

1. Payment of the amount of $69,342.75 payable by Hungary to the United States during the fiscal year beginning July 1, 1931 and ending June 30, 1932, in respect of the bonded indebtedness of Hungary to the United States, according to the terms of the agreement of April 25, 1924, above mentioned, is hereby postponed so that such amount, together with interest thereon at the rate of 4 per centum per annum from July 1, 1933, shall be paid by Hungary to the United States in ten equal annuities of $8,451.16 each, payable in equal semiannual installments on December 15 and June 15 of each fiscal year beginning with the fiscal year July 1, 1933 and ending June 30, 1934, and concluding with the fiscal year beginning July 1, 1942 and ending June 30, 1943. The bond numbered 8, dated December 15, 1923, matured December 15, 1931, in the principal amount of $12,000, and delivered by Hungary to the United States under the agreement of April 25, 1924, shall be retained by the United States until the annuities due under this Agreement shall have been paid.

2. Except so far as otherwise expressly provided in this Agreement, payments of annuities under this Agreement shall be subject to the same terms and conditions as payments under the agreement of April 25, 1924, above mentioned. The proviso in paragraph 2 of such agreement, authorizing the postponement of payments on account of principal, and the option of Hungary provided for in paragraph 4, to pay in obligations of the United States, shall not apply to annuities payable under this Agreement.

3. The agreement of April 25, 1924, between Hungary and the United States, above mentioned, shall remain in all respects in full force and effect except so far as expressly modified by this Agreement.

4. Hungary and the United States, each for itself, represents and agrees that the execution and delivery of this Agreement have in all respects been duly authorized and that all acts, conditions, and legal formalities which should have been completed prior to the making of this Agreement have been completed as required by the laws of Hungary and the United States, respectively, and in conformity therewith.

5. This Agreement shall be executed in two counterparts, each of which shall have the force and effect of an original.

IN WITNESS WHEREOF, Hungary has caused this Agreement to be executed on its behalf by its Envoy Extraordinary and Minister Plenipotentiary at Washington, thereunto duly authorized, subject, however, to ratification, and the United States has likewise caused this Agreement to be executed on its behalf by the Secretary of the Treasury, with the approval of the President,

pursuant to a Joint Resolution of Congress approved December 23, 1931, all on the day and year first above written.

The Government of the Kingdom of Hungary

By

LÁSZLÓ SZÉCHÉNYI

Envoy Extraordinary and Minister Plenipotentiary

The United States of America

By

OGDEN L. MILLS

Secretary of the Treasury

Approved:

Herbert Hoover,

President

WAIVER OF VISA FEES FOR NONIMMIGRANTS

Exchange of aide memoire and note verbale at Budapest April 6 and 21,

1936

Entered into force May 1, 1936

Extended by agreements of October 9 and 31, 1936;1 March 22 and 23, 1937;1 and August 18 and September 21 and 23, 1937 Revived (after World War II) March 9, 1948,2 pursuant to article 10 of treaty of peace signed at Paris February 10, 1947 3 Terminated January 27, 1950 *

4

3

Department of State files

The American Legation to the Ministry for Foreign Affairs

AIDE MEMOIRE

Reference is made to the Legation's Note No. 104 of April 17, 1935, and to previous correspondence with the Royal Hungarian Ministry for Foreign Affairs regarding a suggested reciprocal agreement between the Government of the United States and the Royal Hungarian Government for a reduction or waiver of passport visa fees for non-immigrants.

As a result of conversations which have taken place recently between the Legation and the Passport Bureau of the Royal Hungarian Foreign Office, the Legation understands that the Royal Hungarian Government is willing to waive, during the period from May 1 to October 31, 1936, inclusive, all visa fees for non-immigrants bearing American passports, if the Government of the United States will issue gratis visas during the same period of time to non-immigrants bearing Hungarian passports. The Government of the United States agrees to this proposal and will issue the necessary instruction to the American Consuls abroad upon being advised of the receipt by the Legation of a communication from the Royal Hungarian Foreign Office confirming the statements set forth above.

It is hoped that the Royal Hungarian Government will find it possible to continue this policy of a reciprocal waiver of non-immigrant passport visa fees after the thirty-first of October, 1936.

BUDAPEST, April 6, 1936.

1 Not printed.

2 Department of State Bulletin, Mar. 21, 1948, p. 382.

3

TIAS 1651, ante, vol. 4, p. 457.

4 Pursuant to notice of termination given by Hungary Oct. 25, 1949.

The Ministry for Foreign Affairs to the American Legation

[TRANSLATION]

No. 41.465/10 1936

NOTE VERBAL

The Royal Hungarian Ministry for Foreign Affairs has perused with interest the Aide-Memoire of April 6, according to which the Government of the United States of America is willing to exempt Hungarian subjects, during the period May 1 to October 31, 1936, under conditions of reciprocity, from the payment of visa fees if traveling, but not immigrating, to the United States of America.

The Royal Hungarian Ministry for Foreign Affairs has the honor to advise the Legation that the Royal Hungarian Government has suspended for the above period the regulations requiring visas insofar as the United States of America is concerned.

The citizens of the United States of America may, if in possession of regular passport, enter Hungary (and, of course, also leave the country) during that period without visas.

The Royal Hungarian Government is granting at present the above facilities only temporarily and for a trial period, at the same time expressing the hope that the development of tourist traffic will make it possible to renew this arrangement.

BUDAPEST, April 21, 1936.

Το

THE LEGATION OF THE UNITED States of AmeRICA,

Budapest.

[SEAL]