HC Deb 19 February 1931 vol 248 cc1444-6
66. Mr. HANNON

asked the Chancellor of the Exchequer what was the net sum due to the British Government by the French Government at the close of the War; and how much of this amount was remitted by the British Government when the final settlement was concluded?

The CHANCELLOR of the EXCHEQUER (Mr. Philip Snowden)

The net War Debt of France to this country as at 12th July, 1926-the date of the signature of the Funding Agreement-was £600,000,000. The present value as at the same date of the annuities payable under the Funding Agreement, calculated on the 5 per cent. tables, was £227,000,000. On this basis, 62 per cent. of the debt was remitted.

Mr. HANNON

Did the Chancellor of the Exchequer, when he was negotiating recently with regard to French bonds, bring this very prominent fart to the notice of the French Government?

Mr. SNOWDEN

If the hon. Member will look at the Command Paper issued, I think, last July, containing the representations made to the French Govern-in that matter, he will find that there is reference to it.

Mr. HANNON

As this is a question of very great importance to these bondholders, may I ask the right hon. Gentleman whether he will again call the attention of the French Government to the generosity of this settlement, and ask whether they will recognise the rights of these bondholders?

Mr. SNOWDEN

I am afraid that that is not the question which the hon. Member has put down.

Mr. LAMBERT

Was the settlement in 1926 made on the advice of the "money barons"?

Mr. SNOWDEN

Perhaps the right hon. Gentleman's leader can tell him that. With regard to the supplementary question of the hon. Member for Moseley (Mr. Hannon), I am afraid it has been driven out of my head by the interjection of the right hon. Gentleman the Member for South Molton (Mr. Lambert). Would he mind repeating it?

Mr. HANNON

I asked the Chancellor of the Exchequer whether he would again call the attention of the French Government to the generosity of the settlement which was made by us at the time of the adjustment of our outstanding debt from France, and would he use that argument to get some concession for the bondholders?

Mr. SNOWDEN

Really, I have done all that I possibly could in this matter. If the hon. Member had been so anxious to get justice for the British taxpayer in this matter, his action would have been, perhaps, much more effective had he taken it four years ago.

67. Mr. HANNON

asked the Chancellor of the Exchequer what was the amount which it was finally decided should be paid to the French Government for the use of French Railways by the British Government during the War; what was the sterling equivalent of the sum in francs demanded by the French Government at the rate of exchange at the time of settlement: and what loss was sustained by the British taxpayer by payment in excess of this rate of exchange?

Mr. SNOWDEN

I would refer the hon. Member to paragraph 5 of the British Note of 24th July, 1930, to the French Government on the subject of the claims of British holders of French Rentes issued in the United Kingdom (Command Paper 3779), in which the relevant facts are fully stated.

Mr. HANNON

May I again asl, whether this is not an argument in favour of more generous consideration of these bonds by the French Government?

Mr. SNOWDEN

That is exactly why we incorporated these facts in the Note to which I have referred.