HC Deb 20 May 1930 vol 239 cc212-3
47. Mr. REMER

asked the Chancellor of the Exchequer if, in view of the desirability of encouraging investments in British industry by British investors, he will reconsider the reparation loan under the Young plan?

Mr. P. SNOWDEN

As I have already stated, the amount of the Reparations Loan to be issued in London will be limited to the British Empire share of the proceeds of the loan, and the receipts by this country will be used to reduce National Debt. In these circumstances no question arises of any interference with investments in British industry.

Mr. REMER

What advantage is there in borrowing money from ourselves to pay ourselves?

Mr. SNOWDEN

There is a corresponding reduction in the National Debt.

49. Sir GEORGE HAMILTON

asked the Chancellor whether it is intended that British finance houses shall be entitled to handle the issue of £5,250,000 bonds out of the total of £60,000,000 reparation loan under the Young plan, whether the £5,250,000 will be issued in Britain or elsewhere; or merely that the British Exchequer is entitled to receive the £5,250,000 on account of German reparations to be subscribed by the British public?

Mr. SNOWDEN

As I have already stated in the House, the whole proceeds of the London issue, whatever its amount may be, will be allocated to the British Empire, but we will not be entitled to any part of the issues made elsewhere. The precise amount of the London issue is not yet settled, but as it is entirely for the benefit of the Exchequer I have asked the Bank of England to take charge of the issue.

Sir LAMING WORTHINGTON - EVANS

If the Spa Agreement had remained in force, would not the British Exchequer have been receiving £8,800,000 instead of £5,250,000? [Interruption.] May I have an answer?

Mr. SPEAKER

That raises another question which appears to be of a hypothetical nature.