§ 51. Mr. D. GRENFELLasked the Financial Secretary to the Treasury whether the national indebtedness includes liability for any amounts due from foreign States which have defaulted on loans made to them at any time; whether the objects of such loans were for ordinary development or for military purposes; and whether he will state the several amounts and the date of default in each case?
§ Mr. HORE-BELISHAAs the reply is rather long, I will, with the hon. Member's permission, circulate it in the OFFICIAL REPORT.
§ Mr. GRENFELLCannot the hon. Gentleman give us the main features of his reply?
§ Mr. HORE-BELISHAI will give the hon. Member the outstanding facts, but I must ask him to await the full reply. Our financial indebtedness includes £ 1,068,000,000 advanced to Russia, which is in default, and £1,510,000 owing by Persia, which is also in default. The only foreign loan guaranteed by His Majesty's Government in respect of which we have to meet the payments is the Greek 2½ per cent. Loan of 1898.
§ Mr. GRENFELLHas the hon. Member referred to all the defaults which he is going to give in detail in his answer?
§ Mr. HORE-BELISHAYes, but I have given them very summarily, and I will ask the hon. Member to await the full statement.
§ Following is the reply
§ The national indebtedness includes an amount of £ 1,068,000,000 which was borrowed by the Treasury and was advanced to Russia during the War mainly for military purposes. The Russian Government defaulted on the loans thus made to them in 1918 and the figure given includes interest unpaid since that date. The Government of Persia are also in default on loans made by His Majesty's Government to that country during and after the War, to assist them in maintaining internal law and order. The amount of this indebtedness was reduced by virtue of agreement concluded with the Persian Prime Minister in 1926 to £ 1,510,000 but no payments in respect of it have been made.
§ The only foreign loan guaranteed by His Majesty's Government on account of which payments are now being made by His Majesty's Government under their guarantee owing to the default of the borrowing Government is the Greek 2½ per cent. Loan of 1898. The bulk of the Loan was used by the Greeks to pay a War Indemnity to Turkey. The amounts paid under their guarantee by His Majesty's Government have been as follow:—
| £ | |
| In respect of Interest and Sinking Fund clue 1st April 1932 | 54,000 |
| In respect of Interest and Sinking Fund due 1st October, 1932 | 72,700 |
§ Equivalent amounts have been paid by the French Government who were also Guarantors of the Loan.