§ 48. Mr. Liddall
asked the Chancellor of the Exchequer whether he is aware that the Treasury received all the proceeds of the London issue of the German 5½ per cent. (Young) Loan, 1930–65; that the public were induced to subscribe to the loan on the faith of the Treasury White Paper terms which included a sinking fund contract that has not been honoured; and will he offer an option to exchange the 5½ per cent. German bonds level at par into 3 per cent. British 1965 bonds whereby the Treasury can extinguish its moral obligation and the British bonds, without cost to the taxpayer, by using as a sinking fund the difference between the 5½ per cent. received and 3 per cent. paid?
§ The Chancellor of the Exchequer (Sir John Simon)
The net proceeds of the London issue of the German Government International 5½ per cent. Loan, 1930, amounted to £10,000,000, of which the United Kingdom Treasury received £9,000,000 and the rest of the Empire £1,000,000. The loan is an unconditional liability of the German Government and no liability in respect of it attaches to His Majesty's Government. The answer to the last part of the question is in the negative.