HC Deb 01 August 1939 vol 350 cc2158-9
49 and 55. Mr. G. Strauss

asked the Chancellor of the Exchequer (1) whether he is aware that the Annuity Trust Account of the Bank for International Settlements is invested in Germany; that £2,000,000 of this money was advanced by this country; and, as the reparation scheme for which this account was instituted has been officially abandoned, will he take steps to secure the early return of this money to Great Britain;

(2) what interest payment was made during the last fiscal year on the approximate £2,000,000 deposit made by the Treasury with the Bank for International Settlements in connection with the now-abandoned Young Plan?

50. Mr. Mander

asked the Chancellor of the Exchequer what sum is now held on behalf of His Majesty's Government in the Annuity Trust Account of the Bank for International Settlements, and what rate of interest is now being paid thereon; for what purposes this deposit was made and is now being maintained; and, as the whole of this account has been invested in Germany, whether he will take steps for an early withdrawal of the British deposit?

Sir J. Simon

The United Kingdom is one of 10 creditor Governments interested in the Annuity Trust Account, the British share being about 26,500,000 reichsmarks out of 125,000,000. Apart from the creditor Governments the German Government undertook during the period up to 31st March, 1966, to maintain a similar deposit of 62,500,000 reichsmarks. Under the Hague Agreement of 1930 these deposits do not carry interest although the depositors are entitled under certain circumstances to receive and have received in virtue of their deposits a share in the profits of the bank. The circumstances in which the deposits were provided by the creditor countries out of reparations due from Germany are set out in Command Paper 3484: the deposits are not at present liable to withdrawal. As regards investments of the Bank for International Settlements in Germany I would refer the hon. Members to the Young Report, Command Paper 3343, pages 13 and 14.

Mr. G. Strauss

May I ask whether it is a fact that the purpose for which these deposits were originally made has now disappeared and that, in fact, the British Government now have an investment of £2,000,000 in Germany through the Bank for International Settlements on which they are getting practically no return, and is it not a fact that this money could be withdrawn by application to the Hague tribunal, and should not application be made immediately?

Sir J. Simon

As the hon. Member knows, this is a very complex matter, and many countries besides ourselves are concerned. I have made inquiries on the line which the hon. Member has suggested to me, and I can see much force in the view that action of that kind would revive all sorts of claims and counter-claims in respect of war debts and reparations.

Mr. Mander

In view of the fact that we are running the risk of losing £2,000,000 which belongs to us, will not the Chancellor seriously consider consulting with other Governments concerned with a view to bringing the matter before the Hague tribunal, which is concerned in the matter?

Sir J. Simon

I will take note of the hon. Member's suggestion, but I repeat that a number of Governments are concerned, such as the French Government, which has a very much bigger interest than we have. Probably there is very good reason for leaving things as they are.

Mr. G. Strauss

Will the right hon. Gentleman consult with the French Government on this matter?