§ 53. Mr. SULLIVANasked the Chancellor of the Exchequer what is the amount of debt due to Great Britain by France and Italy, and the amount repaid since 1918?
§ Mr. CHURCHILLThe net War Debts due to Great Britain by France and Italy, 830 as at the date when the Funding Agreements were signed, amount to £600 millions and £560 millions, respectively. The French Government have paid £7 millions since the signing of the Funding Agreement on 12th July, 1926. The Italian Government have paid £8 millions under the Funding Agreement of 27th January, 1926.
§ Mr. SULLIVANWill the right hon. Gentleman say if the French Government have signed a Funding Agreement?
§ Mr. CHURCHILLNo, they have not. They have signed an agreement, but it has not been ratified by the French Government.
§ Mr. SULLIVANIf that be the case, is not the statement that the right hon. Gentleman made last week wholly misleading?
§ Mr. CHURCHILLI demur altogether from that. It is an extremely inaccurate account of the actual facts.
§ Mr. W. THORNEMay I ask the Chancellor of the Exchequer if the two countries mentioned in the question are paying their annual payments punctually?
§ Mr. CHURCHILLYes, certainly. Since the Agreements were signed all the payments have been made punctually.
§ 54. Colonel HOWARD-BURYasked the Chancellor of the Exchequer the amounts received in payments for War Debts in 1926–27 and the amount payable to the United States in the same year; and the maximum that we shall receive in any year as payments for War Debts, and the maximum amount that we shall have to pay to the United States?
§ Mr. CHURCHILLIn 1926–27 we received £8,200,000 from War Debts and paid £33,100,000 to the Government of the United States. The maximum amount due to His Majesty's Government in any year under the War Debt funding agreements is approximately £20 millions a year, and the maximum amount payable to the Government of the United States is £38 millions a year. It must be borne in mind that we have undertaken to limit our claims in respect of Inter-Allied debts to the amount which, together with our reparation receipts, will suffice to cover our payments to the United States Government.
§ Mr. PALINGMay!
§ Mr. CHURCHILLCertainly. During the year 1926–27, our reparation receipts were some £9½ millions. During the current financial year they should amount to £14½ millions; and when the full Dawes annuity is reached, they may amount to upwards of £20 millions. These receipts must be taken into account in comparing our income and outgoings from debts.
§ Mr. SNOWDENIs it a fact that the rate of interest on the American debt for a period of 62 years is 3½ per cent., and is the right hon. Gentleman aware that the United States is now funding its internal debt at 3 per cent.?
§ Mr. CHURCHILLI do not see how that is relevant to any question on which I can give information to the right hon. Gentleman.