§ 25. Mr. HURD(for Mr. H. WILLIAMS) asked the Chancellor of the Exchequer if he is in a position to make a further statement as to the negotiations with regard to inter-Allied debts?
§ The CHANCELLOR of the EXCHEQUER (Mr. Churchill)As regards the French Debt, during the Parliamentary Recess I received a letter from Monsieur Caillaux informing me that the French Government accept 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 outstanding points. Negotiations in regard to these outstanding points have been inevitably delayed by the political situation in France. But the discussions will be resumed shortly in order to complete the agreement.
As regards Italy, the Italian Government have been invited to send representatives to this country to negotiate for the funding of their War Debt and the discussions will take place at an early date.
With regard to other countries the House is already aware that the Relief Debts of Latvia and Lithuania were repaid on 1st January, 1925, and that funding arrangements have been made covering the relief debts of Poland, Rumania, 188 Czechoslovakia, Hungary and Esthonia —in fact for all countries owing Relief Debts except Yugo Slavia and Armenia.
Further arrangements have been made covering minor post-War debts either for munitions or for repatriation with Poland, Rumania, Czecho Slovakia, Greece, Esthonia and Latvia. Claims under this head are still outstanding against Yugo Slavia and Lithuania.
Finally, I am glad to be able to tell the House that a settlement as regards War Debt has been reached with Rumania on the same general basis of principle as that offered to France. The War Debts of Portugal, Greece and Yugo Slavia remain outstanding but I hope that agreements may be reached in their case within the next few months.
§ Sir F. WISEMay I ask the right hon. Gentleman when he proposes to start negotiations with the Italian Government?
§ Mr. CHURCHILLShortly — very shortly—at an early date—quite soon.
§ Mr. W. THORNEWhen the Chancellor of the Exchequer makes his next Budget Statement, I take it for granted he will tell the House the amount of money received for Allied War debts, and how it is going to be used?
§ Mr. CHURCHILLCertainly, I will. Of course, we are paying interest on Debt at the present time at a very high rate, and receipts from foreign sources go in reduction of that interest charge.
§ Mr. DALTONHave the Italian Government been notified by His Majesty's Government that they will be expected to pay the same regard to their obligations to this country as to the United States of America?
§ Mr. CHURCHILLWe have always made it perfectly clear that the principle of pari passu treatment of this country by its debtors is one to which we are most firmly attached.