§ 38. Mr. HAMMERSLEYasked the Chancellor of the Exchequer what is the rate of interest on our debt to the United States of America; whether it is the same as the rate of interest on that part of the debt postponed under the Hoover plan; and, if not, will he explain the reason for the difference?
Mr. CHAMBERLAINThe rate of interest payable under the agreement for the settlement of the British War Debt to the United States Government is 3 per cent. up to the 15th December, 1932, inclusive, and thereafter 3½ per cent. The rate of interest payable on the amount suspended under President Hoover's plan was fixed by the United States Congress at 4 per cent. I am not aware of the reason which led to the adoption of this particular rate of interest, but it is not unusual for the rate of interest upon postponed payments to be somewhat higher than that on payments normally made on the due dates.
§ Mr. HAMMERSLEYCould the Chancellor of the Exchequer explain why he thought it desirable that the British Government should agree to a rate of interest higher in respect of the postponed debt than the rate of interest which was considered desirable in respect of the main debt, which was fixed by the Lord President of the Council?
Mr. CHAMBERLAINI have already stated that it is not unusual for an arrangement of that kind to be made, and there are other arrangements of the kind in regard to our own debts.
§ Mr. HAMMERSLEYIs it not a fact that in an earlier reply the right hon. Gentleman said that it was agreed to 2102 without any objection at all by the Government?
Mr. CHAMBERLAINI did not say that it was agreed to. It is not a question of agreement. We were not asked to agree. We had no choice.
§ Mr. MACQUISTENIn view of the impracticability of paying these debts—
§ HON. MEMBERS: Order!
§ 44. Mr. GEORGE HARVEYasked the Financial Secretary to the Treasury the amount included in Britain's War Debt to the United States of America represented by guarantees given by us for material supplied direct to France on French account?
§ Major ELLIOTThe British War debt to the United States Government contains no specific item of the kind referred to in the question. The position is that if we had not had to meet any calls for assistance from our allies, it would have been unnecessary for us to ask assistance from the United States Government.
§ 72. Mr. HAMMERSLEYasked the Secretary of State for Foreign Affairs if he has any official knowledge of the intentions of France and Italy to sign the agreements relating to debts to the United States of America postponed under the Hoover plan; and, if so, will he give details?
§ The UNDER-SECRETARY of STATE for FOREIGN AFFAIRS (Mr. Eden)I can add nothing to the reply given to my hon. Friend on 31st May last to the effect that all the other Governments concerned have agreed in principle to sign such agreements.
§ Mr. HAMMERSLEYDoes the hon. Gentleman expect to be in possession of more direct information within a reasonable time?
§ Mr. EDENWe have received no formal note, but we have no doubt whatever that the two countries referred to in the question do, in fact, propose to sign.
§ Mr. HAMMERSLEYHave any inquiries been made?