Coll 5/48 ‘Afghanistan: Supply of military aircraft to the Afghan Government; Supply of maps etc. to the Afghan Govt.’ [‎155r] (309/1019)

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The Method of Executing the above Orders.
1. I he British Government, through the Department of Overseas Trade,
may kindly arrange that the Afghan National Bank he brought in contact with
^British firms like Messrs. Platt Brothers, .and a few similar British concerns,
engaged in making British textile machinery, electric plant, and machinery and
also boat and motor-boat constructors.
It may further be agreed that the Department of Overseas Trade will be
good enough to render all possible assistance in bringing the two parties (i.e., the
Afghan National Bank and the British firms) together to reach a general under
standing and to materialise this by agreeing on a plan of three or five years
on the basis of which a contract is to be made by mutual arrangements of the
parties concerned. In it the procedure is to be outlined as to the method and
manner of undertakings agreed by the British party, whereby it would be
explained as to the kind of machinery, the terms, and prices according to which
the purchases are to be made by Afghanistan. It will also embody the nature
of undertakings agreed by the Afghan Bank with regard to the above-mentioned
purchases.
2. The Afghan National Bank will undertake to take over each lot of
merchandise thus purchased on the basis of the plan and contract referred above,
against which the Afghan Bank will issue eight separate Bills of Exchange in
this manner. The first Bill of Exchange is to be as the first instalment of the
first year, and the last bill as to be the instalment of the eighth year in accordance
with the schedule of payments appended herewith.
The Department of Overseas Trade would be also kind enough to be the
guarantors for these Bills of Exchange, while it is requested that the Bank of
England would accept these bills against making payments to the British makers
from whom the machinery is purchased. The Bank of England, of course, debit
the amount of interest incurred on these bills to the account of the Afghan
National Bank, and, on its part the Afghan Bank agrees to meet these bills
when they fall due, and to settle payments with the Bank of England.
Appendix 1 to Enclosure 1.
Loans Taken.
Orders from Afghan National Bank to Various Companies.
Date.
A mount.
£
1938
1939
1940
1941
100,000
150.000
150.000
200.000
Total 600,000
Appendix 2 to Enclosure 1.
Loan paid by Afghan
National Bank,
Loan already
Kabul, Afghanistan.
paid up.
£
£
1939 ...
12,500
12,500
1940 ...
31,250
43,750
1941 ...
50,000
93,750
1942 ...
75,000
168,750
1943 ...
75,000
243,750
1944 ...
75,000
318,750
1945
75,000
393,750
1946 ...
75,000
468,750
1947 ...
62,500
531,250
1948 ...
43,750
575,000
1949 ...
25,000
600,000
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