HC Deb 29 May 1930 vol 239 cc1480-1
76. Lieut.-Colonel HENEAGE

asked the Chancellor of the Exchequer what advantages will accrue to Great Britain in the arrangement that Great Britain is to be entitled to subscribe for £5,250,000, and possibly up to £10,000,000, of the German Reparation Loan under the Young Plan, even though all the cash subscribed is to be left in Britain for redemption of debt, that would not accrue if the annuities were held till maturity?

Mr. P. SNOWDEN

The loan will have the advantage of giving us a capital sum in cash, instead of annuities spread over a period of years: and it will have the effect of converting so much of the German obligation from a political into a market debt, any default upon which would necessarily involve Germany's commercial credit. The mobilisation of the German reparation payments has been one of the objects of the creditor Powers ever since the Treaty of Versailles, and we are bound to co-operate in giving effect to the provisions of the Young Plan under this head.

Lieut.-Colonel HENEAGE

Can the right hon. Gentleman say whether this marks a new departure in Treasury policy?

Mr. SNOWDEN

No.