§ 5. Mr. LIDDALLasked the Secretary of State for Foreign Affairs whether he is aware that the German Government now has an annual free sterling credit balance of such an amount as puts that Government in the position to pay in cash the interest and sinking funds on its defaulted British-owned public loans; and will he arrange for a revision of the 1934 agreement so that cash may be received by British investors in German public loans instead of funding bonds?
§ The FINANCIAL SECRETARY to the TREASURY (Mr. W. S. Morrison)I have been asked to reply. The statement in the first part of the question does not appear to be correct if re-exports are taken into account. The answer to the second part of the question is in the negative; as my hon. Friend is no doubt aware so far as the Dawes and Young Loans are concerned, interest is being paid to British holders in cash in full.
§ Mr. LIDDALLIs not my hon. and learned Friend aware that the Germans are using this money for increasing armaments, and that they are merely bluffing us?
§ Mr. MORRISONNo, Sir, I am not aware of that.