§ 64. Colonel WEDGWOODasked the Secretary to the Treasury whether the £72.000 a year that His Majesty's Government is advancing to make up the deficiency on the Anglo-French Guaranteed Turkish Loan of 1855 is being advanced to the Egyptian Government or to whom, and is it treated as a Grant-in-Aid or a loan; and why the French Government is not bearing its share of this deficiency on our joint guarantee to the bondholders?
§ Mr. McNEILLThe interest on the Ottoman Loan of 1855 is guaranteed jointly and severally by the British and French Governments. Egypt having defaulted in the payment of the £72,000 per annum due by her since July, 1924, His Majesty's Government have advanced to the agents for the service of the loan the sums necessary to cover the payment of the coupons, of which His Majesty's Government are the guarantors. When the Egyptian Government put an end to their default, these advances will be recovered, and in the meantime the question of the joint liability of France is under discussion with the French Government.
§ Colonel WEDGWOODHow much longer are we going to continue paying this money, when France owes an equal share with us in the guarantee?
§ Mr. McNEILLAs I have told the right hon. Gentleman, the liability is 390 joint and several, and we are discussing the matter with the French Government at the present moment.
§ Sir F. WISEHave we made any application to the Egyptian Government for a refund?
§ Mr. McNEILLI could not say that without notice.
§ Colonel WEDGWOODWill application be made to the Egyptian Government for this money?
§ Mr. McNEILLI understand that there is a very good prospect of the Egyptian Government making good the default and paying the arrears.