§ 58. Sir JOHN POWERasked the Chancellor of the Exchequer the total liability in the event of defaults incurred by this country in guaranteeing the loans raised by certain foreign countries under the auspices of the League of Nations?
§ Mr. CHURCHILLThe only loan issued under the auspices of the League of Nations in respect of which this country has given any guarantee is the Austrian Guaranteed Loan of 1923, 24£ per cent. of which is guaranteed both as to principal and interest by the British Government. The net capital liability of the British Government in respect of this loan as on 31st March last was for £3,128,601 in sterling and for amounts in other currencies equivalent to about £3,800,000 at the present rates of exchange. Details will be found on page 93 of the Finance Accounts, 1926–27. It should be made clear that, while His Majesty's Government are liable under their guarantee, for the above amount, the Austrian Government have, from the outset, duly discharged the full service of the loan and have already paid off some £21 millions by means of the Sinking Fund, so that no actual payments have at any time been required from any 703 of the guarantor States, and there is no reason to anticipate such an eventuality in the future.