HC Deb 28 March 1923 vol 162 cc489-90
48. Colonel WEDGWOOD

asked the Prime Minister whether he can give the House any information as to the credit of £ 75,000,000 granted by the Bank of England to the Bank of France, which should be repaid at the end of this month; whether this credit was given with the concurrence of His Majesty's Government; is the debt due by the French Government or by a French corporation; and if there is a default in payment will the shareholders of the Bank of England or the British taxpayer suffer the loss?

The CHANCELLOR of the EXCHEQUER (Mr. Baldwin)

The credits were given by the Bank of England to the Bank of France in 1916 and 1917 and the amount now outstanding is £55,000,000, repayable by the end of August next. The debt is due by the Bank of France with whom the Bank of England is negotiating. The transaction was entered into with the concurrence of His Majesty's Government who guarantee the Bank of England under the powers of the War Obligations Acts.

Colonel WEDGWOOD

Does that mean, in the case of default, that the British taxpayer will have to foot the Bill?

Mr. BALDWIN

I do not think that any question of default will arise.