HC Deb 22 February 1921 vol 138 cc761-2
60. Sir W. DAVISON

asked the Chancellor of the Exchequer what is the total amount of the loan from the United States of America to Great Britain; was any portion of such sum, and, if so, what portion, borrowed direct by the British Government; and what are the amounts for which the British Government are liable as guarantors in respect of loans from the United States through Great Britain to France, Italy, or other allied Powers?

Mr. CHAMBERLAIN

My hon. Friend's question is based upon a common misapprehension of the facts. Before the entry of the United States into the War, the British and French Governments raised a loan of $500,000,000 in the New York market on their joint and several guarantee. This loan was paid off in equal shares by the two Governments last autumn. No loans were made by the United States Government till after the entry of the United States into the War, and no loans made by the United States Government to Allied Governments were ever guaranteed by us.

Our debt to the United States Government stood at $4,277,000,000 on the 31st May, 1919. It now stands at $4,197,000,000 exclusive of interest since that date.

Our loans to Allied Governments before the entry of the United States into the War amounted to £828,000,000, and after the entry of the United States into the War and during the period in which we were borrowing from the United States Government, we lent a further £897,000,000 to the Allies, making £1,725,000,000 in all.

Sir W. DAVISON

Do I understand then that the prevalent opinion that the United States were not willing to advance money direct to France and Italy unless Great Britain were prepared to back the bill and give the guarantee is not correct? Is that an erroneous impression?

Mr. CHAMBERLAIN

That is entirely an erroneous impression. The United States made loans to France and to Italy as well as to ourselves, and, as I have said, have neither sought nor received any guarantee from us of any loan they made, except, of course, our obligations for the loans that we ourselves accepted from them.

Sir W. JOYNSON-HICKS

Was not almost the entirety of the money we borrowed from the United States lent at once to our Allies?

Mr. CHAMBERLAIN

I think 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.