§ 3. Sir ROBERT NEWMANasked the President of the Board of Trade the number of the staff, all grades, employed at the Clearing Office for Enemy Debts, Cornwall House, on the 15th July, 1923, 15th January, 1924, and 15th July, 1924, respectively; and whether the administrator will, in order to reduce the cost of administration, pay off, at an early 1087 date, each adjudicated Anglo-German claim for compensation under Article 297 (e) of the Treaty of Versailles upon which an unpaid balance of not more than £100 is still outstanding?
Mr. WEBBThe staff employed by the Clearing Office (Enemy Debts), including the Departments for the administration of Austrian, Bulgarian and Hungarian property, and the accredited representatives in Berlin, Vienna and Budapest, numbered:
I am afraid that the proposal made in the last part of the question is not feasible. I would remind the hon. Member that a further dividend of 7s. 6d. in the £ was paid on the 8th instant on awards under Article 297 (e), making a total distribution up to date of 15s. in the £, and that all awards of £50 and under have been paid in full.
On July 15th, 1923 … 978 On January 15th, 1924 … 862 On July 15th, 1924 … 780
§ Mr. A. M. SAMUELIf we got rid of these small debts, would not the result be a very considerable saving in the administration expenses at Cornwall House?
Mr. WEBBSteps have been taken in that direction, but it must be remembered that there is a large number of these small debts; and it would not be profitable to save the salaries of a few clerks at the cost of losing many times the amount.
§ Lieut.-Colonel Sir J. NALLIs the cost of this borne by the public or by ex-enemy funds?
Mr. WEBBIn the first instance, it falls on the British Exchequer, but there is a charge, according to the Treaty, upon all items recovered; and the amount of that charge is estimated entirely to cover the cost of administration.
§ Mr. SAMUELIs it not a fact that the cost of the administration of Cornwall House falls entirely on the British creditor?
§ 4. Mr. A. SOMERVILLEasked the President of the Board of Trade whether he is aware that, in certain cases, debts 1088 due by a British national to a German on 4th August, 1914, have had interest charged on them by the Clearing Office (Enemy Debts) for the period of the War, although it was illegal during that period for the British debtor to pay the debt; whether a Gelman is treated in a similar manner in the case of a debt due by him to a British subject; and by what Statute the practice is governed?
Mr. WEBBThe answer to the first part of the question is in the affirmative. The provisions regarding the payment of interest on pre-War debts are contained in paragraph 22 of the Annex to Section III of Part X of the Treaty of Versailles, which was given effect to by the Order made under the Treaty of Peace Act, 1919. The provisions are applicable equally to German and to British debtors.
§ Mr. SOMERVILLEDoes the right hon. Gentleman consider it just that a British debtor should be charged interest on his debt during the period when it was illegal to pay?
Mr. WEBBI would point out that, during that prolonged period when the British debtor was not allowed to pay his debts, he retained the use of his money, at a time when the rate of interest was considerably more than he is now charged.