§ 78. Mr. GILBERTasked the Financial Secretary to the Treasury whether he can now state what are the terms of the agreement entered into with the London Underground Railway Company for the extension and improvement of the tube railways in London and district; whether it means a capital payment to the company or the guarante only of the interest on certain loans; and can ho state what is the total financial responsibility involved to the Government?
Mr. YOUNGThe agreement between the Treasury and the London Underground Railway Company is not yet finally completed, and full details cannot therefore yet be published. In substance and subject to various conditions, the Treasury guarantees principal and interest of issues of debentures to be made by the London Electric Railway Company and the City and South London Railway Company up to a combined total amount of £5,000,000. There is no question of a capital advance by His Majesty's Government, which would be outside the terms of the Trade Facilities Act.
§ Mr. GILBERTIs it the intention of the Underground Railway Company to provide a sinking fund in order to pay off the capital?
Mr. YOUNGThat is the sort of thing about which I am not to-day able to make any detailed statement.