Following a period of negotiation, the United States of America will offering a loan to the Kingdom of the Netherlands subject to the following agreement conditions:

1. Effective date of the Agreement – The effective date of this Agreement shall be the date on which the Government of the United States of America notifies the Government of the Kingdom of the Netherlands that the Congress of the United States of America has made available the funds necessary to extend to the Government of the Kingdom of the Netherlands the line of credit in accordance with the provisions of this Agreement.

2. Line of credit – The Government of the United States will extend to the Government of the Kingdom of the Netherlands a line of credit of $1,250,000,000 which may be drawn upon at any time between the effective date of this Agreement and December 31, 1960, inclusive.

3. Amortization and interest –

   1. The amount of the line of credit drawn by December 31, 1960, shall be repaid in 50 annual installments beginning on December 31, 1962, with interest computed as a fixed rate equivalent to 2.92% of the amount drawn by this date. Payment of the fixed interest amount shall be repaid no later than December 31, 1961.
   2. The Government of the Kingdom of the Netherlands may accelerate repayment of the amount drawn under this line of credit.

4. Other exchange arrangements –

   1. The Government of the Kingdom of the Netherlands agrees that after the effective date of this Agreement it will not apply exchange controls in such a manner as to restrict (a) payments or transfers in respect of products of the United States permitted to be imported into the Kingdom of the Netherlands or other current transactions between the two countries or (b) the use of guilder balances to the credit of residents of the United States of America arising out of current transactions. Nothing in this paragraph (1) shall affect the provisions of Article VII of the Articles of Agreement of the International Monetary Fund when those Articles have come into force.

   2. The Governments of the United States of America and the Kingdom of the Netherlands agree that not later than one year after the effective date of this Agreement, unless in exceptional cases a later date is agreed upon after consultation, they will impose no restrictions on payments and transfers for current transactions. The obligations of this paragraph (2) shall not apply:

      (a) to balances of third countries and their nationals accumulated before this paragraph (2) becomes effective; or

      (b) to restrictions imposed in conformity with the Articles of Agreement of the International Monetary Fund, provided that the Governments of the Kingdom of the Netherlands and the United States of America will not continue to invoke the provisions of Article XIV, Section 2 of those Articles after this paragraph (2) becomes effective, unless in exceptional cases after consultation they agree otherwise; or

      (c) to restrictions imposed in connection with measures designed to uncover and dispose of assets of Germany and Japan.

   3. This section and section 7, which are in anticipation of more comprehensive arrangements by multilateral agreement, shall operate until December 31, 1954.

5. Import arrangements – If either the Government of the United States of America or the Government of the Kingdom of the Netherlands imposes or maintains quantitative import restrictions, such restrictions shall be administered on a basis which does not discriminate against imports from the other country in respect of any product; provided that this undertaking shall not apply in cases in which (a) its application would have the effect of preventing the country imposing such restrictions from utilizing, for the purchase of needed imports, inconvertible currencies accumulated up to December 31, 1954, or (b) there may be special necessity for the country imposing such restrictions to assist, by measures not involving a substantial departure from the general rule of non-discrimination, a country whose economy has been disrupted by war, or (c) either government imposes quantitative restrictions having equivalent effect to any exchange restrictions which that government is authorized to impose in conformity with Article VII of the Articles of Agreement of the International Monetary Fund. The provisions of this section shall become effective as soon as practicable but not later than December 31, 1954.

6. Technical assistance agreements - The United States of America agrees to establish an office of the Technical Assistance Program (TAP) in Den Haag no later than December 31, 1954, unless adjusted later by joint agreement of the United States of America and the Kingdom of the Netherlands. This office shall assist the Government of the Kingdom of the Netherlands in the modernization and improvement of Dutch industrial capacity and business organization.

7. Limitations on usage of line of credit - The Government of the Kingdom of the Netherlands agrees to abide by the following conditions for the usage of credit supplied through this agreement, which is to be monitored by the Den Haag office of the Technical Assistance Program:

   1. Funds provided by the line of credit established by this agreement shall be used solely for internal industrial and agricultural development of the Kingdom of the Netherlands, or on the procurement of American raw materials and industrial goods. Usage of these funds for purposes of debt repayment or the procurement of non-American materials and goods is strictly prohibited.
   2. In line with the developmental purposes of this loan and the established Technical Assistance Program office, burdensome regulations on Dutch business and production are to be removed in every area found to be unnecessary or an overencumbrance on economic growth. Representatives from the Technical Assistance Program office in Den Haag will work with councils of local businessmen to determine which regulations are causing economic disruption, while also being mindful of regulations necessary for the protection of the Dutch market and the people of the Netherlands.
   3. Representatives from the Den Haag office of the Technical Assistance Program must play a pivotal role in approving, directing and monitoring the use of credit received through this agreement, both to ensure that no skimming or other corrupt use of these funds will be initiated by the Government of the Netherlands, as well as to help guide its distribution in a way that maximizes the productivity of the Dutch economy.

8. Definitions – For the purposes of this Agreement:

   1. The term "current transactions" shall have the meaning prescribed in Article XI X (i) of the Articles of Agreement of the International Monetary Fund.

9. Consultation on Agreement – Either government shall be entitled to approach the other for a reconsideration of any of the provisions of this Agreement, if in its opinion the prevailing conditions of international exchange justify such reconsideration, with a view to agreeing upon modifications for presentation to their respective legislatures.