§ 35. Sir EUGENE RAMSDENasked the President of the Board of Trade what steps have been taken in regard to the operation of the Anglo-German payments agreement so far as relates to the liquidation of frozen debts?
§ Lieut.-Colonel COLVILLEI apologise to the House for the length of this answer, but the matter is one of some importance to traders in this country.
The House will be glad to know that the Anglo-German Payments Agreement made on the 1st November last is so far working satisfactorily, and that, including the £400,000 paid when the Agreement was signed, an amount of approximately £1,400,000 has now been made available by the German Government towards the liquidation of outstanding trade debts. Further sums will become available from time to time in accordance with the terms of the Agreement.
The replies received by the Board of Trade to the circular issued to traders immediately after the signature of the Agreement have now been examined and tabulated. The total of the debts which fell due between 1st March and 31st October, 1934, is approximately £4¾ millions, of which about £3¼ millions represent debts in the period 1st March to 19th August, i.e., prior to the operation of the Anglo-German Exchange Agreement, and about £1½ millions represent debts in the period 20th August to 31st October,
200 On the recommendation of the committee which my right hon. Friend appointed, under the chairmanship of Lord Plender, to advise on this problem, he proposes that a first distribution should now be arranged on the debts which fell due in the period 1st March to 19th August, 1934, inclusive; and the German Government have been asked to allot exchange, out of the funds available, sufficient to provide, in respect of these debts, for a payment of 30 per cent. on the total debt due to a creditor from each of his debtors, subject to a minimum payment of £100. Each creditor will receive this week from the Board of Trade instructions as to the procedure which he should adopt to secure payment.
It is estimated that £1,200,000 will be required for this distribution, leaving a balance of approximately £200,000, which, together with the monthly 10 per cent. allocation under Article 6 of the Anglo-German Payments Agreement in respect of December, will be available towards payment of a similar distribution at a later date on the outstanding debts due between the 20th August and 31st October, inclusive. The distribution on these latter debts has had to be deferred, pending the closing of the Sondermark Account established under the Anglo-German Exchange Agreement of 10th August, as in many cases United Kingdom creditors are not yet aware whether the sums due to them are to be paid through the Special Account or not. As soon as such cases can be distinguished, arrange- 201 ments will be made for a distribution of 30 per cent., with a minimum of £100, on the debts due between the 20th August and 31st October, and my right hon. Friend hopes that this will be possible in January.
The Anglo-German Payments Agreement provides that claims in respect of debts due before the 1st March, 1934, are to be subjected to a special examination by the two Governments. Details in regard to certain of these debts were given to the German Government in the course of the recent negotiations in Berlin, and the Board of Trade propose to issue an announcement shortly with a view to securing a complete return.