§ 50. Mr. WARDLAW-MILNEasked the Chancellor of the Exchequer what countries outside Europe, and excluding the United States and Russia, owe money to British investors; to what extent such countries have defaulted; and what steps 2413 are being taken by the Government to secure payment of the debts due and to defend the interests of British investors?
The SECRETARY of STATE for FOREIGN AFFAIRS (Mr. A. Chamber-Iain)The Chancellor of the Exchequer has asked me to reply. I am not in a position to give a list of the foreign Governments, States, municipalities, etc. which are in default on loans held by British investors, since questions arising out of such a default are primarily matters to be settled between representatives of the bondholders and the defaulting borrower, and are in many cases dealt with without the Foreign Office being asked to intervene. Detailed information on the matter will be found in the reports of the Council of the Corporation of Foreign Bondholders, which are published annually, and, as regards any special loan, details are given in the "Stock Exchange Intelligence," and similar publications. It is the general practice of the Foreign Office to give support by diplomatic action to authorised representatives of British bondholders when requested to do so by them. The terms of my hon. Friend's question might be held by a casual reader to suggest that the Government of the United States of America have defaulted in respect of some of their obligations. I am sure that this is not my hon. Friend's intention, and I have already expressly dissociated myself from any such charge.
§ Mr. WARDLAW-MILNEIs the right hon. Gentleman aware that the House quite realises that the default is not on the part of the United States, but on the part of certain States which now form part of the United States?
Mr. CHAMBERLAINI know that certain States are in default, but not the United States of America, and I was sure that my hon. Friend did not intend to imply that the United States were in default.
§ 51. Mr. WARDLAW-MILNEasked the Chancellor of the Exchequer which of the States of the United States of America are in arrears in the payment of interest and the return of principal of money borrowed from British investors; what is the total amount owing to this country in respect of interest and prin- 2414 cipal from these States; which of the States have definitely defaulted; and which have legislated to prohibit recognition of the debts?
Mr. CHAMBERLAINWith regard to the first part of the question, I would refer the hon. Member to my reply to the hon. and gallant Member for Burton (Colonel Gretton) on the 1st April. With regard to the second part of the question, attempts have been made in the past to gather accurate figures but it has been found impossible to secure complete or accurate information. As far as can be ascertained, the approximate amount in default with compound interest accrued at five per cent., would be about £180,000,000 but it has not been possible to ascertain what part of this sum is owing to British subjects. There is no information on the third and last parts of the question.
§ Mr. WARDLAW-MILNEMay I ask the right hon. Gentleman whether, if the bondholders desire this body to take action, he will support any representations they may make to the United States as the only Government now representing, however indirectly, the original defaulting States?
Mr. CHAMBERLAINThe United States Government does not control those States, and I am afraid that representations to the United States Government would be useless. I think, therefore, it is inexpedient that I should make them.
§ Mr. WARDLAW-MILNEMay I ask the right hon. Gentleman if there is any other body he can suggest to whom the bondholders can make any representation?
Mr. CHAMBERLAINThe British bondholders are in the same position as the American bondholders, and have the same means, or absence of means, of getting redress.
§ Mr. WARDLAW-MILNEExcept that we owe them money.