HC Deb 25 July 1918 vol 108 cc2093-4

(1) Section one of the Government War Obligations Act, 1914, which, as extended by Section one of the Government War Obligations Act, 1915, and Section one of the Government War Obligations Act, 1916, relates to the provision of money for the fulfilment of Government war obligations incurred before the passing of the last-mentioned Act, shall be further extended so as to include the provision in the like manner of money for the fulfilment of any Government war obligations incurred before the passing of this Act.

(2) The Schedule to the Government War Obligations Act, 1914 (which as extended by the Government War Obligations Act, 1915, and the Government War Obligations Act, 1916, sets out the Government war obligations), shall be further extended so as to include obligations incurred in connection with the present War in respect of undertakings given to any foreign State for the purpose of obtaining the release of cargoes on board enemy vessels interned in the harbours of that State.

Motion made, and Question proposed, "That the Clause stand part of the Bill."

Mr. BOOTH

I wish to ask the Financial Secretary to the Treasury if he can say what amount is likely to be incurred under Sub-section (2)? I understand that the new obligation will ultimately lead to loss to the Exchequer.

Mr. BALDWIN (Joint Financial Secretary to the Treasury)

I cannot give an estimate of the amount involved, but I do not think any charge at all will come upon the Exchequer, because the liability is for any claims which may be made against the Portuguese Government in the matter of British goods which were interned in enemy vessels in Portuguese harbours. For these claims we have also secured an indemnity for ourselves from the cargo owners, which is backed by the guarantee of a British bank of standing. So it is, humanly speaking, quite impossible that any loss should fall on the Exchequer with regard to this obligation.

Mr. BOOTH

I take it the Government may have to pay something out on account of these Portuguese cargoes?

Mr. BALDWIN

Possibly.

Mr. BOOTH

But my right hon. Friend is quite confident that it will not be a very serious amount, and the bulk of it should come back.

Mr. BALDWIN

The whole of it.

CLAUSE 2 (Short Title) ordered to stand part of the Bill.

Bill reported, without Amendment; to be read the third time upon Monday next.