§ 8. Sir ROBERT NEWMANasked the President of the Board of Trade whether, on the expiry of the time limit on 15th August, the Peace Treaty requires him to await further the convenience of the German Clearing-house authorities before the British Clearing-house disburses to British creditors payment for due and unpaid direct obligations of the various German Governments and municipalities of which proofs in proper form have been lodged with the British Clearing-house prior to 15th May, 1920; whether the British Clearing-house will in the absence of such requirement pay out on 16th August to British creditors who have before 15th May, 1920, lodged their securities and coupons and proved their claims in proper form, provided that the German authorities have not proved that the securities and coupons are not genuine; if not, if he will say why this will not be done; and if he will say why it is considered necessary for him to take diplomatic action before making disbursements on claims that have not been confirmed by Germany before 15th August, as provided by the Treaty, seeing that Great Britain holds enough German assets to meet British claims lodged and proved against German debtors before 15th May, 1920, and that a time limit has been provided by the Peace Treaty to protect British creditors specifically against the delays which cause this and similar questions to be put down?
§ 10. Mr. SHORTasked the President of the Board of Trade if he will ascertain through the German Clearing-house for enemy debts how many properly sworn claims for British-owned credit balances with German banks, lodged with the British Clearing-house before 1st March, 1920, have not yet reached the German banks concerned; what he proposes to do at the expiry of the stipulated date on 15th August about these British funds in German banks if they have not been agreed by the German Clearing-house before 15th August; and whether it is in the public interest that these British-owned credits should be handed over to 5 their owners in Britain at the earliest day after 15th August, in order to be used in the working of British trade and finance?
§ Sir R. HORNEUnder the terms of the Treaty, debts notified to the German Clearing Office on the 15th May are deemed to be admitted unless they are objected to by the 15th August, or such later date as may be agreed upon. A similar provision applies in the case of debts due from this country to Germans. Owing to the size and complexity of the operation involved, however, it will, I fear, be impossible for all claims to be disposed of within the period laid down by the Treaty as a mimimum, and it may be necessary to agree to extend the time. Subject to this, debts admitted or not objected to within the stipulated period will be paid to British creditors as speedily as practicable. Diplomatic action would only become necessary in the event of Germany failing to comply with the terms of the Treaty, and the payment of British creditors will not be dependent upon it. I do not think any useful purpose would be served by asking the German Office to give the information referred to by the hon. Member for Wednesbury. Every effort is being made on this side to expedite the settlement of the debts passing through the Clearing Offices; and, so far as I can judge, the German Clearing Office also is endeavouring to fulfil its obligations. I trust that hon. Members will appreciate, however, that the settlement of tens of thousands of claims for a total of fifty or sixty millions sterling is a task which inevitably requires a certain amount of time. If creditors have to wait a few weeks longer than they would wish for their money, they are at any rate relieved from the trouble and risk of collecting it for themselves, and interest continues to run upon the debt until its admission.