HC Deb 22 March 1927 vol 204 cc204-6
57. Mr. ROY WILSON

asked the Chancellor of the Exchequer whether Great Britain will receive more this year from Germany in reparation payments than she will have to pay to the United States in respect of war debt instalments?

Mr. CHURCHILL

No. Sir. This year our receipts from German reparations will represent about one-third of our payments to the United States.

Mr. WILSON

In view of the fact that a statement to the contrary effect, attributed to the Secretary of the Treasury of the United States, was reported in the "Times" of Thursday last, will my right hon. Friend be good enough to see that the answer he has now given gets the widest form of publicity possible?

Mr. CHURCHILL

As soon as I saw the newspaper report, I asked the Foreign Office to make an inquiry, in order that we might know exactly what had been said; but this particular question of my hon. Friend does not represent what Mr. Mellon is reported to have said.

58. Mr. BENNETT

asked the Chancellor of the Exchequer whether, with regard to inter-Allied debts, he can state how much from this year on Great Britain will every year receive from her debtors, and how much she will pay to the United States?

Mr. CHURCHILL

During the calendar year 1927, Great Britain should receive £12¾ millions in respect of German Reparation (including Belgian War Debt), and £9½millions in respect of Allied War Debts, or £22¼ millions in all, and will pay £33 millions to the United States Government During 1928, Great Britain should receive £16¾ millions from Reparation and £ll¼ millions from War Debts, or £28¼ millions in all, and will again pay £33 millions to the United States Government. From 1929 onwards our receipts would be sufficient, on the assumption that it is found possible to transfer the full Dawes annuities, to cover current payments to the United States Government, which rise in 1933 to nearly £33 millions. But, even if the full Dawes payments were received each year for 60 years from now, our receipts from Separation and Allied War Debts would not be sufficient, on the basis of present values, to cover our payments to the United States Government, including those made in the past before we received anything from our debtors. Further, in accordance with the policy outlined in the Balfour Note, His Majesty's Government have undertaken that, in the event of their aggregate receipts from reparations and inter-Allied War Debts exceeding their aggregate payments to the United States (including those made in the past), they will make a proportionate abatement in the next payments due to them under the various War Debt funding agreements, so that in no circumstances can His Majesty's Government retain any excess over their payments to the United States Government.

Mr. SNOWDEN

Will the right hon. Gentleman say how he calculated the figure of £11,500,000 that he expects to get from War Debts?

Mr. CHURCHILL

I can quite easily give the figures, but I do not think I had better improvise them by mental arithmetic at the moment. I will, however, give them to the right hon. Gentleman at any time. As a matter of fact, there is, I think, £6,000,000 from France, £4,000,000 from Italy, and the rest is made up of smaller items.

Mr. SNOWDEN

Did the right hon. Gentleman include the expectation of £6,000,000 a year from France, and does he think, in view of the statements of M. Poincaré, that that expectation is likely to be realized?

Mr. CHURCHILL

Yes, I have a definite agreement with France with regard to that for the present year.

Lieut.-Commander KENW0RTHY

Are we to understand that Lord Balfour's declaration is to be considered as bind- ing upon us for the future with regard to debts?

Mr. CHURCHILL

It was a declaration that we made, setting out for our own guidance the policy we intended to pursue, and the policy which we have been pursuing to a very large extent. In the course of various settlements that we have made with different debtors, we have incorporated the Balfour principle of taking no more than is required from us.

Lieut.-Commander KENW0RTHY

There is nothing binding about it?

Mr.

CHURCHILL: Certainly it is binding if it is incorporated in an agreement.

Lieut.-Colonel HOWARD-BURY

Will the right hon. Gentleman see that these facts are circulated to all foreign nations, so as to overtake the misleading statements made by Mr. Mellon?

Mr. CHURCHILL

I do not think we ought to assume that those statements are misleading until the actual report of what was said is received in this country. When I am in possession of that, I dare say it will be possible for me to make a statement which will show exactly where any ground of divergence occurs.

Captain GARR0-J0NES

Have the French Government yet ratified the Agreement referred to by the right hon. Gentleman?

Mr. CHURCHILL

No, Sir, it has not been ratified. I recently answered a question on that subject, put, I think, by the hon. and gallant Gentleman himself, when I stated the arrangements made for the forthcoming year.

Sir H. CROFT

Has the right hon. Gentleman any expectation, private or public, of getting anything from Russia?