HC Deb 07 June 1932 vol 266 cc1772-4
42. Mr. HAMMERSLEY

asked the Chancellor of the Exchequer if he will explain why the Government has agreed to pay 4 per cent. interest on the postponed debts to the United States under the Hoover plan in view of the prevailing low rates for borrowed money?

Mr. CHAMBERLAIN

I assume that my hon. Friend has in mind the low rates on three months bills, but I would point out that the proposal to which he refers was authorised by the United States Congress on 22nd December, 1931, on the basis that the period of repayment was 10 years.

Mr. HAMMERSLEY

Is my right hon. Friend aware that, in a reply recently given, it was stated that the rate of interest was arrived at, not by a unilateral statement but by agreement? Have not the Government made any protest in respect of the rate of interest charged by the United States? That is my question.

Mr. CHAMBERLAIN

No, Sir. My hon. Friend's question is not that at all. If he will read it, he will see that the question is different. I have answered the question on the Paper.

Mr. HAMMERSLEY

Arising out of that reply, would my right hon. Friend now say whether or not any protest was made or any representations made in respect of the rate of interest?

Mr. CHAMBERLAIN

No, Sir; no protest was made.

Mr. HAMMERSLEY

No representations?

Mr. CHAMBERLAIN

No protest.

Mr. CRAVEN-ELLIS

In view of the possibility that this House may not consent to the renewal of the War Debt payment to the United States, why make the position more difficult?

Mr. SPEAKER

That is entirely hypothetical.

43. Mr. HAMMERSLEY

asked the Chancellor of the Exchequer whether our agreement to pay 4 per cent. interest on the postponed debts to the United States under the Hoover plan was arrived at after consultation with France and Italy?

Mr. CHAMBERLAIN

His Majesty's Government gave instructions in regard to the signing of the agreement on the subject of the amounts due to the United States and suspended under President Hoover's Plan in the knowledge that similar action was being taken by the French and Italian Governments.

Mr. HAMMERSLEY

Has my right hon. Friend any knowledge as to when France and Italy propose to sign?

Mr. CHAMBERLAIN

I require notice of that question.