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11.22.4.2 Existing Debts Owed by the Occupied Territory. The Occupying Poweris under no obligation to pay the debts owed by the occupied territory, although it may choose todo so as a matter of policy. 456The Occupying Power may prevent payments from being made from occupied territory toa hostile belligerent. 45711.22.4.3 Contracting New Debt on Behalf of the Occupied Territory. In general,the Occupying Power may not contract new debts (including through the issuance of debtsecurities) on behalf of the occupied territory or collect taxes to pay interest on such debt. 458However, new debt may be undertaken on behalf of the occupied territory if immediatelynecessary for the welfare of the inhabitants of occupied territory, and if undertaking such debtconstitutes a fair and reasonable transaction. 45911.22.4.4 Refinancing or Consolidating Existing Public Debt. The OccupyingPower may refinance or consolidate already existing public debt of the occupied territory if it isconsider the obligation assumed by the bank as creating an indebtedness to the persons associated in the insurrectionand the draft as an evidence thereof. Such indebtedness may properly be collected by the United States as a militarymeasure calculated to weaken the insurrection.”).456 VON GLAHN, THE OCCUPATION OF ENEMY TERRITORY 158-59 (“Most authorities concur in the belief that anoccupant is under no obligation to pay interest on or the principal of any public debt owed by the territory, that is, bythe lawful sovereign. The occupant may, of course, choose to do so, as a matter of public policy, just as he maydecide to pay pensions hitherto charged against the absent sovereign, but ordinarily all such payments are notconsidered to constitute proper administrative expenses obligating the occupying power.”).457 VON GLAHN, THE OCCUPATION OF ENEMY TERRITORY 156 (“The occupant may rightfully prevent all paymentsfrom the area under his control to the hostile government.”).458 VON GLAHN, THE OCCUPATION OF ENEMY TERRITORY 159 (“Second, it is generally accepted that an occupantmay not contract new debts on behalf of the occupied territory or collect taxes to pay interest on such unlawful debt.Some authorities differ with this conclusion and maintain that there exists an exception, based on necessity and onthe occupant’s obligation to restore and maintain order and public safety. This latter view appears reasonable,provided that it could be demonstrated convincingly that the new indebtedness was not only required by the welfareof the native population but also constituted a fair and reasonable transaction.”). For example, Coalition ProvisionalAuthority Order No. 95, Financial Management Law and Public Debt Law, §4(2) (Jun. 4, 2004) (“Until such time asthe Iraqi Interim Government assumes full governance authority in accordance with Article (2)(B)(1) of the Law ofthe Administration for the State of Iraq for the Transitional Period, the Ministry of Finance is prohibited fromissuing new debt securities if the issuance of such securities would increase the total level of Iraq’s public debt,including obligations to the Central Bank, beyond the current level of such debt.”).459 John W. Griggs, Attorney General, Cuba—Claims—Contracts, Jan. 19, 1899, 22 OPINIONS OF THE ATTORNEYGENERAL 310, 311 (1900) (“The completion of the proposed contract between Dady & Co. and the city of Havanawould involve an expenditure for the benefit of that city of $14,000,000, to be secured by an issue of municipalbonds. It is manifest that a matter of such great importance to the city of Havana, its citizens and taxpayers, oughtnot to be determined without a full and complete understanding of all the facts and a thorough knowledge of thecivil law applicable thereto under the system prevailing in Cuba. … The administration of the United States in Cubais of a military nature, and merely temporary. No action binding the island or any of its municipalities to largeexpenditures and continuing debt ought to be made, except upon grounds of immediate necessity, which in this casedo not appear to be present.”).815