HC Deb 10 June 1937 vol 324 cc1956-7
55 and 57. Mr. Craven-Ellis

asked the Chancellor of the Exchequer (1) whether, in the view of his advisers, the stabilisation of world currencies is necessary before a settlement of the American War Debt is possible; and what are the essential conditions aimed at before stabilisation can take effect;

(2) whether payment of war debts owing by France and other allies, and reparation by Germany to Great Britain will be demanded as a condition of our renewal of war debt payments to the United States of America?

Sir J. Simon

Discussions in regard to the British War Debt to the United States of America would have to take into account all relevant factors, including those connected with Inter-Allied War Debts and Reparations and those connected with the relationship between the pound sterling and other currencies. As regards the conditions of a return to stabilisation on a gold standard, I would refer my hon. Friend to the reply which I gave to him on 3rd June.

Mr. Thorne

Will the right hon. Gentleman consider the advisability of advising all those interested to wipe out all the War debts and start with a clean slate?

56. Mr. Craven-Ellis

asked the Chancellor of the Exchequer what proportion of the American war debt owing by this country to the United States of America is attributable to loans, services, and goods, respectively?

Sir J. Simon

Of the total expenditure incurred by His Majesty's Government in the United States after the date of the entry of the United States into the War, about 87 per cent. was attributable to goods, about 12 per cent. to interest on and repayment of loans, and under z per cent. to services. About 56 per cent. of this total expenditure was covered by the advances from the United States Treasury, and the balance out of our own resources, reimbursements by Allies, and other methods.