HC Deb 10 May 1934 vol 289 cc1247-8
43. Mr. ALBERY

asked the Financial Secretary to the Treasury on what date His Majesty's Government were notified that Greece would default on the Guaranteed Greek Loan of 1898; and what steps have been taken by His Majesty's Government to obtain repayment of moneys paid under the British Government guarantee?

Mr. HORE-BELISHA

His Majesty's Government were informed in the latter part of March, 1932, that the Greek Government regarded it as impossible for them to continue the full transfers of the service of their foreign loans, including the Guaranteed Loan of 1898. As from 1st April, 1932, the full service of the loan has been paid by the British and French Governments in accordance with their guarantee, each Government bearing half the cost. Under an agreement reached with the bondholders, the Greek Govern- ment paid and transferred 30 per cent. of the interest on other loans during the year 1932–33, and has repaid to the British and French Governments a corresponding proportion of the service of the Guaranteed Loan for that year, the amount received by His Majesty's Government being £21,992 5s. 4d. The conclusion of a similar arrangement in regard to the years 1933–34 and 1934–35 is at present under discussion with the Greek Government.

Sir A. M. SAMUEL

May I ask my hon. Friend whether the Russian Government were not also a party to this guarantee, and whether any arrangement has been made with them?

Mr. HORE-BELISHA

I must have notice of any matter arising out of the answer.