English Translation

Z6 38 3 With regard to the final financing of the settlement, Mr Hauptfleisch pointed out that its lending value can only be determined after the final settlement.The Land Office needs permission to borrow from the colonisation fund - an exception - and can then grant 90% of the land value and 50% of the building value as mortgage credit and 2 1/4% and 1% repayment. Interest and amortization must be guaranteed by the yield. If the above lending limit were applied, the first mortgage of the Land Office would not increase substantially over K 6, 200,000.---, from which yields can be paid interest and adressed. The second mortgage to be procured would have to be made available without interest by the Ministry of Social Affairs, since with an average monthly rent of K 350.- per settlement property, the return on the second mortgage would no longer allow. According to the income ratios of the person's income in question as a tenant , it cannot be expected at present that the tenants can pay more than K 350.- monthly rent . Mr. Dr. Giess agreed that negotiations with the Ministry of Social Affairs should now be conducted by the Reichspro-tektor authority in order to deal with the financing of the settlement in Iglau. Prague, lo. February l940. fis Manpepaic 338