§ 38 and 40. Mr. RICHARD EVANSasked the Chancellor of the Exchequer (1) the terms of any funding agreements existing in respect of loans made by Britain to foreign Governments for relief and reconstruction after 1918; and whether the terms of such agreements are being observed;
(2) the sum now owed to Britain by foreign Governments on account of loans made since 1918 for relief and reconstruction; and whether the principal and interest involved are guaranteed by the League of Nations?
§ Mr. HORE-BELISHAAs the answer is somewhat long and involves a number of figures, I will circulate it in the OFFICIAL REPORT.
§ Following is the answer:
§ The amounts now owed by foreign Governments to His Majesty's Government on account of loans made for relief and reconstruction are as follow:
| £ | |
| Belgian Reconstruction Loan | 9,000,000 |
| Belgian Congo Loan | 3,600,000 |
| Relief Loans: | |
| Austria | 8,825,000 |
| Poland | 4,007,000 |
| Roumania | 2,101,000 |
| Yugoslavia | 1,945,000 |
| Estonia | 218,000 |
§ All these loans were made for productive purposes and are therefore analogous to commercial loans and not to War Debts. The Belgian and Belgian Congo Loans were funded in 1925 on terms providing for the repayment of principal in full, together with 5 per cent. interest, within a period of 30 years.
§ The Relief Loans (with the exception of the Relief Loan to Austria) were also funded in 1925 on terms providing for repayment of the principal in full within a period of from 15 to 20 years together with 5 per cent. interest. The Polish and Roumanian Governments owed similar debts to other ex-Allied and ex-neutral Powers which were funded on identical conditions at the same time.
§ The Austrian Government were indebted to various European Governments and also to the United States of America Government in respect of Relief Loans to the total amount of about £37,000,000. All these loans were funded in 1928 on identical terms representing a considerable reduction of the debt which was agreed to in view of the financial situation of Austria. The settlement provided for 40 annuities as from 1929.
§ The service of these loans is not in any instance guaranteed by the League of Nations. Payments in respect of these loans were suspended under the terms of the Hoover Moratorium from 1st July, 1931, to 30th June, 1932, and a further suspension after the end of the Hoover year has been agreed to in view of the financial difficulties with which the countries concerned are at present confronted.