§ Mr. HARMSWORTH(by Private Notice) asked the Chancellor of the Exchequer whether the resignation of M. Caillaux, late Foreign Minister of France, will prejudice the settlement recently arrived at between this country and France in regard to war debt.
§ Mr. CHURCHILLThe late French Government have accepted in principle the arrangement that the French war debt to this country should be discharged by annuities averaging £12,500,000 a year within a period of 62 years, subject to the further discussion of various important outstanding points. The resignation of M. Caillaux has inevitably delayed the further discussion of these outstanding points, but does not affect the agreement in principle already reached.
§ Mr. W. THORNEWill the amount of money paid in the shape of principal and interest be used for the purpose of reducing the National Debt?
§ Mr. CHURCHILLIt will go into the general funds of this country and will be available for meeting the general expenditure.
§ Mr. J. JONESHow does the right hon. Gentleman account for the report which has appeared in the Press that France has been able to make better arrangements with the United States in regard to their war debt than we have been able to make?
§ Mr. MACLEANIs not this repayment of the capital debt, and ought it not to be placed against the repayment of principal and not against revenue?
§ Mr. CHURCHILLReally, I think it would be difficult to do justice to these extremely complicated and interesting financial points at Question time. They are the subjects for debate.
§ Mr. MACLEANDoes not the right hon. Gentleman realise that we have already had instances of this kind happening in the House, where money for the repayment of capital expenditure has been placed to revenue account and spent by the Government?
§ Mr. SPEAKERThat is a matter for argument.