HC Deb 19 June 1933 vol 279 cc478-9

(for Sir PERCY HARRIS) asked the Chancellor of the Exchequer whether, in view of the condition appearing in the prospectus of the German External Loan of 1924, issued by the Bank of England, to the effect that for the purpose of providing the necessary foreign currencies for the service of the loan the German Government, the Reparation Commission, the Transfer Committee, and the Agent-General for Reparation Payments agreed that funds required to be sent abroad for that purpose should have an absolute right of remittance, which right should have priority over the remittance of funds required to be remitted in discharge of reparation payments or other liabilities, he will protect the rights of the German External Loan 1924 bondholders and prevent the utilisation of any funds remitted from Germany for meeting subsequent liabilities, whether short-term loans or debts under the standstill agreement?


I would refer the hon. Member to the official report in the Press of the meeting held on 16th June between the President of the Reichsbank and representatives of long-term creditors of Germany, which includes the following statement: It was strongly advocated, and no objection was raised, that the service of the Dawes Loan should have absolute priority over other transfers.