HC Deb 11 March 1926 vol 192 cc2597-8
Mr. SNOWDEN

(by Private Notice) asked the Chancellor of the Exchequer whether the expected visit of the French Finance Minister to London to complete the debt settlement has been postponed, and whether the proposals agreed to in principle with M. Caillaux are to be regarded as open indefinitely?

Mr. CHURCHILL

As hon. Members are aware, a new French Government has now been formed, in which M. Raoul Peret is Minister of Finance. I am taking steps to resume, as soon as possible, the negotiations which have so many times been interrupted. His Majesty's Government regard the Agreement made with M. Caillaux in August last as binding on both parties, and I do not propose to withdraw the offer then made.

I take this opportunity, however, of pointing out that the interest accruing on the French debt to this country amounts to approximately £30,000,000 sterling per annum, and that this sum is provided by the issue to us, as it arises, of additional French Treasury Bills, which augment continually the total of the debt. The situation is, therefore, one of serious and increasing difficulty; and it is indispensable that the various outstanding points should be adjusted, and that the Agreement should be fully completed within a reasonable time.

Mr. SNOWDEN

Are we to assume that the right hon. Gentleman has no intention of modifying the arrangement made last year?

Mr. CHURCHILL

I think my answer covers very fully the whole of the points raised in the question.

Captain GARRO-JONES

Has the right hon. Gentleman sent any communication to M. Peret since the new Government has been formed?

Mr. CHURCHILL

The Government was only formed, I believe, yesterday morning.