ANGLO-GERMAN PAYMENTS AGREEMENT. (Hansard, 7 July 1938)

§ 46. Mr. Bracken
asked the Prime Minister when the House will be given an opportunity of discussing the revised Anglo-German Payments Agreement?

§ The Prime Minister
I fear that in the present state of Parliamentary business it will not be possible to give a special opportunity for the discussion of the agreement referred to, but no doubt there will be occasions in the normal course of business on which it could be discussed.

§ Mr. Bracken
As this question raises issues of very great importance to investors, ought it not to be discussed in this House? In view of the fact that the Prime Minister is unable to provide me with an answer, I beg to give notice that I shall raise this matter on the Adjournment at the earliest possible opportunity.

70. Lieut.-Colonel Sir A. Lambert Ward
asked the Chancellor of the Exchequer whether he will clarify the position of foreign holders of the British Tranche of the Austrian 4½ per cent. Guaranteed Loan, in view of the fact that it was issued by the Bank of England and that the principal and interest is, in part, guaranteed by the British Government?

§ The Chancellor of the Exchequer (Sir J. Simon)
The Anglo-German Transfer Agreement of 1st July, 1938 (Command Paper 5788), does not cover bonds of the Austrian Government 4½ per cent. Guaranteed Loan which were not in the ownership of British holders on 1st July, 1938. The position of holders of such bonds will therefore depend upon any arrangements made between the German Government and the Government of which such holders are nationals, or, failing any such arrangement, on the implementation by the guarantor Governments of their guarantees. In regard to the latter point, I would refer my hon. and gallant Friend to the reply which I gave to my hon. Friend the Member for West Lewisham (Sir P. Dawson) on Monday last.

§ Mr. Bellenger
Can the right hon. Gentleman say whether the holders of such bonds will be reimbursed by the guarantors in case of no suitable arrangement being come to between the German Government and the holders of the bonds?

§ Sir J. Simon
That was the subject of the answer to which I have referred my hon. and gallant Friend. Perhaps it may be convenient if I read one sentence: I understand that all the Governments represented at the recent meeting of the Committee of Guarantor States in London indicated their readiness to implement their guarantees, if called upon to do so."—[OFFILIAL REPORT, 4th July, 1938; col. 43, Vol. 338.]