HC Deb 24 October 1932 vol 269 cc583-5
20. Sir WILLIAM DAVISON

asked the Secretary of State for Foreign Affairs what is the total amount of the arrears of subscriptions due to the League of Nations from its members; what are the names of the countries which are in arrear; and what additional sum has had to be provided by Great Britain and the British Dominions in consequence of the defaults of other Powers?

Sir J. SIMON

The total sum in arrears on the 30th September, 1932, was 17,049,160 gold francs, but this date is not the end of the League's financial year. The following countries were in arrear on that date for various sums:

Peru, Honduras, Nicaragua, Paraguay, Salvador, Bolivia, Argentine, Guatemala, Chile, Cuba, Dominican Republic, Liberia, China, Albania, Colombia, Haiti, Panama, Uruguay.

I understand that these arrears have been hitherto made good from surplus funds and that no increase has been made in the proportion of contributions due from Great Britain and the British Dominions. As has previously been explained, it has been the practice of the League in some years to reduce contributions of States Members of the League by deduction, in proportionate shares, of the surplus from the previous year. To this extent the contributions of the States who have paid their allotted shares punctually have possibly not been reduced to the extent they might have been if all contributions had been paid promptly.

Sir W. DAVISON

Can the right hon. Gentleman say whether these countries, many of which have been in arrears for many years, still have rights of voting, and whether it is true to say that Great Britain and the Dominions pay between 40 and 50 per cent. of the whole expenditure of the League?

Sir J. SIMON

I think the figure is more like 30 per cent. The constitution of the League is well known to my hon. Friend, and therefore I need not deal with the other part of his question.

Mr. HERBERT WILLIAMS

Is it not a fact that the British Empire contribution is 26 per cent. of the amount levied and a very much higher percentage of the amount paid?

Sir BASIL PETO

From the financial point of view does it not come to exactly the same thing if you are not paid what is owed and you are asked to pay something more which you do not owe?

Sir J. SIMON

Perhaps my hon. Friend will address that question to my right hon. Friend the Chancellor of the Exchequer. This matter was raised both at the Council and the Assembly this year, when appeals were made to the countries in arrear to meet their overdue contributions, and the United Kingdom delegation strongly supported this view.

Captain P. MACDONALD

Can the right hon. Gentleman say from what source these surplus funds were made up? Do not they come from nations like the British Empire who are already contributing more than their share?

Sir J. SIMON

The situation is this; it has happened sometimes that in past years what has been budgeted for and collected has not been spent. The question is how to deal with the surplus. It is from that surplus hitherto that it has been possible to make good the deficiencies to which attention has been called. That process cannot go on.