HC Deb 14 June 1938 vol 337 cc33-5
49. Mr. Maclean

asked the Chancellor of the Exchequer the number of loans for Austria which were raised in Great Britain since 1920 and the amounts of each loan; whether, and to what extent, Austria has defaulted; whether the British Government guaranteed any of those loans and to what extent; how much was outstanding when Germany annexed Austria; and what is the situation now regarding interest payments and capital repayments?

Sir J. Simon

In reply to the first, third and fourth parts of the question I would refer the hon. Member to the reply which I gave to the hon. Member for South-West Bethnal Green (Sir P. Harris) and other hon. Members on 21st February. In reply to the second part of the question, there was no default in payment to the bondholders in respect of these loans prior to the incorporation of Austria into the German Reich. In reply to the last part of the question, I would refer the hon. Member to the reply which I am giving to-day to a question by the hon. Member for East Birkenhead (Mr. White).

52. Mr. White

asked the Chancellor of the Exchequer whether he is in a position to make any statement with regard to the future of the Austrian external debt?

Sir J. Simon

As the hon. Member will be aware from the communiqué published on 12th June, members of the Committee of Guarantor States for the Austrian Loans, representing the Governments of Belgium, the United Kingdom, Czechoslovakia, Denmark, France, the Netherlands, Sweden and Switzerland which met last week in London, had before them a letter from the German Government stating that in their view they were under no legal obligation to take over the external debts of the former Austrian Federal Government. The committee decided to address a united protest to the German Government and, while reserving the right of their Governments to protect their national interests by such means as they might deem appropriate, if a general settlement could not be reached, the committee expressed the hope that the German Government would reconsider their decision. The question whether it will be necessary for His Majesty's Government to take measures to protect the interests of this country depends on the results of discussions which are at present taking place between His Majesty's Government and the German Government, and I cannot, therefore, make any further statement on the matter at present. In view of the unsatisfactory position of these loans, an arrangement was made during the recent discussions in Berlin that, failing a satisfactory settlement of the question, His Majesty's Government may terminate the present Anglo-German Payments Agreement on 30th June without notice, and we are, therefore, free to take any necessary action as from that date.

Mr. Thorne

Can the right hon. Gentleman state the reason why Italy, which is very much affected, did not attend this meeting?

Mr. Bellenger

Can the Chancellor say why Italy has not taken part in these united discussions considering that she is also one of the guarantors of the loans to Austria?

Colonel Wedgwood

Can the right hon. Gentleman give the total annual liability upon this country and the total liability upon all the co-signatories, and say whether our liability in case of the default of all the other nations involves the whole sum or only one part?

Sir J. Simon

Those questions have been previously answered in the House and I would refer the right hon. and gallant Gentleman to the replies, but if he will put a question down I will give the figures exactly.

Mr. Craven-Ellis

In view of these frequent defaults in loans to foreign countries, will the Government consider confining their overseas lending to the British Empire for the purpose of developing it?

53. Mr. Shinwell

asked the Chancellor of the Exchequer whether he can make a statement on the question of whether or not the German Government intend to default on their external debt?

Sir J. Simon

As regards the external debt of Germany as it existed prior to the incorporation of Austria into the German Reich, I have nothing to add to the answer which I gave to the hon. Member on 3rd June. As regards Austrian loans, I would refer him to the reply which I have given to-day to the hon. Member for East Birkenhead (Mr. White).

Mr. Shinwell

Do I understand from that answer that the apprehensions felt in many quarters that Germany will default on her external debt are not justified?

Sir J. Simon

I have nothing to add to my answer.