§ 60. Mr. HOLFORD KNIGHT
asked the Chancellor of the Exchequer what is the annual amount of the charge upon public funds in respect of interest upon external loans left uncovered by the remission of debts due by foreign Governments in respect of the late War?
The money lent to the Allies during the War was borrowed at an average rate of interest of slightly over 5 per cent. The total amount of the War Debts covered by Funding Agreements is £1,246 millions on which interest at 5 per cent. amounts to £62½ millions. The total annuities payable under the agreements amount to £17½ millions, and on this basis (which leaves out of account 1967 any provision for repayment of the money borrowed) the uncovered charge upon public funds is £45 millions a year.
§ Mr. KNIGHT
Are we to understand that the amount paid by the taxpayers in respect of these agreements is £45,000,000 a year?
§ Mr. KNIGHT
With great respect, this is an important point. Is the House to understand that the charge on the British taxpayer arising out of the remission of War debts is £45,000,000 a year?
§ Mr. HERBERT WILLIAMS
Is it not the case that in arriving at this figure account is taken of the amount due in respect of reparations?