18. Captain MACDONALDasked the Secretary of State for Foreign Affairs if he can make any statement with regard to the precise application of the Johnson Act recently passed by the United States legislature, so far as the bonds and obligations of the British Government are concerned; and whether he has any definite information as to whether Great Britain will held to be a defaulting debtor within the meaning of this Act?
§ Sir J. SIMONAs has already been stated in the Press, the Attorney-General of the United States has given a considered opinion to the effect that the token payments hitherto made by Great Britain do not constitute this country a defaulting debtor within the meaning of the Johnson Act.
Captain MACDONALDMy question relates to the future position of token payments to the United States. Will further token payments be held up until the position is clarified?
§ Sir J. SIMONI do not think the hon. and gallant Member's question asks that. If it does, I must reply by saying that it will depend upon the circumstances prevailing at the moment.
Captain MACDONALDIs it not a fact that the United States Government have informed our representatives in America that further token payments will rank as defaulting payments?
§ Sir J. SIMONI cannot add to what I have said.