§ 51. Captain CAZALETasked the Chancellor of the Exchequer whether the policy of the Balfour Note, in regard to debt settlements, has been abandoned in view of the fact that the combined payments of France, Italy and Germany cannot possibly in any one year equal our annual debt to America?
§ Mr. CHURCHILLThere is to change in the general policy of His Majesty's Government in regard to inter-Allied debts, as stated by me to tin's House on the 10th December, 1924, and the Balfour Note remains the broad foundation of our policy. But the House must not infer that His Majesty's Government can give a definite undertaking that, whatever happens, the objective of the Balfour Note will be integrally and absolutely attained. The detailed settlements with the various debtor Powers must obviously depend on a number of different considerations, particularly on the estimate we may reach of their respective capacity of payment: and only when all the settlements have beer completed will it be possible to strike a balance between on1 payments and receipts. The House may rest assured, however, that His Majesty's Government will conclude no settlement that does not, in its opinion, carry care the principle of the Balfour Note to the fullest extent that is practicable or expedient.
§ Lieut. - Commander KENWORTHYWhen was the policy of adjusting debts to capacity of payment adopted by the Government? Is this not quite a new departure?
§ Mr. CHURCHILLI certainly never contemplated that we were pursuing a policy of collecting debts which excluded the capacity of the debtor to pay.
§ Lieut. - Commander KENWORTHYDoes not the right hon. Gentleman see that to adjust the debt according to the capacity of the debtor is an absolutely new departure which has not yet been adumbrated by the Government?
§ Mr. CHURCHILLOn the contrary, I think that the collection of debts and reparations having regard to the capacity of the debtor to pay, has been from the very outset the foundation of the policy we and all other nations have pursued.
§ Colonel WEDGWOODIs that not exactly what the French Government have been pressing us SO long to do, which hitherto the right ion. Gentleman has resisted?
§ Mr. CHURCHILLThere were three points of substance which were not settled at the time when M. Caillaux visited this country, and which were not capable of settlement. I have been waiting for a further discussion with some French Minister of Finance, and have addressed myself to several, but without arriving at an opportunity for discussion.
§ Miss WILKINSONWill the right hon. Gentleman carry out that same principle with regard to the Russian debt?
§ Mr. CHURCHILLIt has been carried out, apparently, to an extent which leaves nothing to be done by me.
§ 52. Captain CAZALETasked the Chancellor of the Exchequer whether the Government of the United States of America have made any suggestion in regard to altering the rate of interest which the British are paying on their debt to the United States of America, in view of the fact that the terms of the British debt are approximately 14 times as heavy as if they had been settled on the same basis as the American-Italian debt?
§ Mr. CHURCHILLThe answer is in the negative.