HC Deb 17 July 1933 vol 280 cc1517-8
15. Sir CYRIL COBB

asked the Secretary of State for Foreign Affairs whether, in view of the new position created by the statement of the German Reichbank issued on 12th July, insisting upon the unilateral alteration of the contract governing amortisation of German bonds issued, in London and elsewhere, and the action of the committee of British creditors, supported by the committees of four other countries, on the same date, protesting and withholding consent therefrom, His Majesty's Government will notify the German Government that it supports the British committee in its objection to any breach of good faith caused by the law of June, 1933?

The FINANCIAL SECRETARY to the TREASURY (Mr. Hore-Belisha)

His Majesty's Government have not been approached by the creditors with any re quest that representations should be made.

Sir ARTHUR MICHAEL SAMUEL

In view of the position of the Treasury with regard to one of these loans, will the hon. Gentleman ask the German Government to define the right by which they can break their pledged word, given in 1930, by their own unilateral legislative action in June, 1933?

Mr. HORE-BELISHA

I think that I have made it plain in my answer that the creditors did not approach His Majesty's Government with any such proposal.

Sir A. M. SAMUEL

Is the hon. Gentleman aware that the Treasury in some degree stand for the creditors, in view of the fact that it took all the money provided by British investors at the issue of the Young Loan of 1930?

HORE-BELISHA

I could not accept without notice the assumption on which that question is based, that His Majesty's Government are a. creditor for the interest of these loans. They may have had what was due to them from the proceeds of the loan when it was raised, but that is a different matter.