CO129-472 - Others - 1921 — Page 695

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penal interest raised in the latter portion of the communication, it is my desire that penal interest should

not be demanded in any case where further information regarding the claim is bona fido required for the purpose of enabling the debtor to ascertain whether it is due, and this appears to be the intention aimed at in paragraph 7 of

the Annex to Section III of the Treaty. In this regard I

am in general agreement with the vicws suggested in paragrapha

1 and 2 of the communication.

As to paragraphs 3 and 4, generally spoaking I consider

that it would be to the mutual convenience of both offices

if it were decided that in no case should penal interest

be payable in respect of a claim or refusal to admit a

claim until either Office gave notice to the other that it

refused to allow the matter to remain in aboyance any longer, and that, unless the claim were admitted or rejected, as the case might be, within a certain period, say fourteen days, penal interest would be claimed as from the expiration of

that perind. This would give both offices the opportunity of putting forward any further information which might bear

upon the subject matter of the claim, or of endeavouring

to bring the parties to a compromise.

If this proposal is agreed to, it will obviate the

difficulties regarding the counter neticos roferred to in

tho President's communication, without abandening the

right of either Office, by means of such a notice 13

mentioned above, to put an end to the period for

fur thor discussion.

As to paragraph 5 of the communication, I am in agree-

ment with the view therein expressed, as, in my opinion,

whatever be the nature of the compromise come to beween

the parties, such compromise must cover the whole subject

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