§ 45. Mr. R. A. TAYLORasked the Prime Minister if he can make any further statement on the declaration made by President Hoover on 19th June; and what steps have been taken by His Majesty's Government to give effect to President Hoover's proposals?
§ The PRIME MINISTER (Mr. Ramsay MacDonald)I have nothing to add to the full statement made by my right hon. Friend the Chancellor of the Exchequer on 24th June explaining to the House the steps which His Majesty's Government in the United Kingdom had decided to take for the purpose of giving practical effect without delay to President Hoover's proposals.
§ Mr. TAYLORCan my right hon. Friend now say what creditor Governments have notified the Bank of International Settlements that they agree with the suspension of German payments?
§ The PRIME MINISTERNo, I cannot, because the information has not come to me.
§ Mr. WISECan my right hon. Friend say whether an early opportunity will be given for a discussion in this House of this very important financial change?
§ The PRIME MINISTERNo, I cannot say.
56. Mr. CHAMBERLAINasked the Chancellor of the Exchequer whether he is now in a position to make a statement as to the manner in which he proposes to deal with the deficiency in the national finances which will arise if the proposals of the United States Government are accepted?
§ The CHANCELLOR of the EXCHEQUER (Mr. Philip Snowden)I am circulating in the OFFICIAL REPORT a statement showing the effect of the proposals on the finance of the current year. It would be premature at this stage to indicate what steps will be taken to deal with the resulting position.
Mr. CHAMBERLAINCan the right hon. Gentleman say whether there is likely to be any alteration of the figure which he gave us before as to the maximum amount?
§ Mr. SNOWDENIt will be reduced by about £160,000 on account of the generous action of South Africa.
§ Mr. SMITHERSHave any other Dominions made a similar offer?
§ Following is the statement:
§ In the present financial year the payments due on the Debt to the United States Government amount to £32,864,000. The receipts from Reparations and from War Loans to Allies allowed for in the Budget were:
| £ | £ | |
| from Reparations | 15,800,000 | |
| from War Loans to Allies | 17,750,000 | |
| 33,550,000 | ||
| The following sums allowed for in the Budget are also affected by the proposals: | ||
| from Dominion and Colonial War Loans | 6,870,000 | |
| from Indian War contribution | 836,000 | |
| 7,706,000 | ||
| from loans for Reconstruction, Relief, Repatriation and stores | 2,273,000 | |
| The full total is | £43,529,000 |
§ The details of the various loans under each head will be found on page 6 of the Financial Statement. A sum of £814,000 in respect of a Sinking Fund payment on the Australian War Debt had already been excluded from the Budget estimate of receipts.
§ The effect on the present financial year of the new proposals is complicated by the fact that they would take effect from the 1st July and not from the 1st April. We have already received £13,033,000 of the £43,529,000 due to us under the various heads indicated and have already paid £13,555,000 of the £32,864,000 due to the United States Government.
§ If full advantage had been taken of the offer made by His Majesty's Government in the United Kingdom the loss to the present financial year would have been £11,187,000 and there would be a small gain to next financial year. These figures will require amendment to the extent to which any Government does not desire to take advantage of the offer: the generous response made by His Majesty's Government in South Africa, of which the House is aware, will improve our position by £169,000 in this financial year and again in next financial year.
§ Mr. STANLEY BALDWIN(by Private Notice) asked the Prime Minister whether he can now inform the House as to the replies received from His Majesty's Governments in the Dominions and the Government of India to the communication addressed to them on the subject of reparations and war debts?
§ The PRIME MINISTERI am happy to be able to inform the House that His Majesty's Governments in Canada, the Commonwealth of Australia, New Zealand, and the Union of South Africa and the Government of India have cordially welcomed President Hoover's proposal and have agreed in principle to the suspension of reparation payments, subject to the acceptance of the proposal by the other creditor Governments. With regard to the war obligations of Australia, New Zealand, the Union of South Africa and India to the United Kingdom, all the Governments concerned have expressed their gratitude for the offer made by His Majesty's Government in the United Kingdom. It has been accepted by all of them with the exception of His Majesty's Government in the Union of South Africa who, while 886 expressing their high appreciation of the generosity of the offer, have intimated that they do not consider that circumstances in the Union are such as to justify taking advantage of it. I should like to add that the attitude of the Union Government in this matter will, I feel sure, be warmly appreciated by all Members of this House.