§ 47. Sir NICHOLAS GRATTAN-DOYLEasked the Chancellor of the Exchequer what steps he is taking as there is now an annual credit balance on Anglo-German transactions in favour of Germany, which would enable her to provide in cash the contractual sterling sinking funds on the British issue of the 1930 Young Loan and the full debt services on German long-term municipal loans issued in London; and whether, failing a satisfactory re-arrangement to utilise the sterling credit balances for the benefit of British holders of German defaulted obligations, he will operate the dormant Anglo-German exchange clearing?
§ The CHANCELLOR of the EXCHEQUER (Mr. Chamberlain)His Majesty's Government support the claims of British holders of German obligations to receive the full amounts to which they are entitled as soon as circumstances permit. Existing arrangements which by agreement will continue until the end of the present year have been recognised by the Bondholders Committee to be the best obtainable in the circumstances, and it does not therefore appear that any further steps can usefully be taken by the Government in the matter at the present time.
§ Sir N. GRATTAN-DOYLEDoes not my right hon. Friend think that it is very unsatisfactory and very disturbing that this very large balance is allowed to lie in the hands of Germany, when he knows, and everybody knows, that this money is being used for increased armaments?
§ Mr. CHAMBERLAINMy hon. Friend must not expect me to accept the view of the situation which he has put forward, but I agree that the position is always very unsatisfactory when people do not pay their debts.