§ 57 and 58. Mr. G. Straussasked the Chancellor of the Exchequer (1) whether he will give an assurance that no part of the money held under the Czechoslovakia (Restrictions on Banking Accounts, etc.) Act, 1939, will be released to the German Government either directly or through the Bank for International Settlements without the prior approval of Parliament;
(2) whether gold amounting approximately to 800,000 ounces, held in London in the name of the Bank for International Settlements on behalf of the Czech National Bank, is an account falling within the provisions of the Czecho-Slovakia (Restrictions on Banking Accounts, etc.) Act, 1939; and whether any transfer in respect of this deposit has recently taken place?
§ 59. Mr. Sandysasked the Chancellor of the Exchequer whether any conversations or negotiations have recently taken place between British Government officials and representatives of the German Government or of German financial interests, regarding the disposal of Czecho-Slovak gold or other assets held in this country?
§ The Financial Secretary to the Treasury (Captain Crookshank)Assets held to the order of the Bank for International Settlements do not fall within the Czechoslovakia (Restrictions on Banking Accounts, etc.) Act, and any mandate of the Bank for International Settlements for the transfer of such assets, of course, has to be complied with. Indeed, having regard to the undertakings given by His Majesty's Government for the protection of the assets of the Bank for International Settlements embodied in the Hague Protocol of 1930 and the Brussels Protocol of 1936, assets held to the order of the Bank for International Settlements could not properly have been made subject to such restrictions as those imposed y the Act. His Majesty's Government have no power, either under the Act re- 1918 ferred to or otherwise, to obtain information as to the assets held by the Bank for International Settlements or any other private institution for the account of individual customers, and I should like to make it clear that my right hon. Friend has no means of knowing whether the facts are, or are not, as stated by the hon. Member for North Lambeth (Mr. G. Strauss).
As regards assets blocked by the Act, the position is that they cannot be released except with the consent of the Treasury. The Treasury has not consented to the release of any such assets except in the case of amounts to assist refugees from Czecho-Slovakia and for the payment of trade debts due under contracts made before 15th March last. Apart from such individual cases, there will be no general release of such assets unless and until a satisfactory arrangement has been made in regard to financial obligations due from Czecho-Slovakia to British holders.
Informal conversations are taking place between the Treasury and representatives of the German Foreign Office and German Ministry of Economics in regard to the assets covered by the Act and cognate questions. The object of these conversations is to see whether a basis exists for more formal discussions which would be held early next month.
§ Mr. StraussMay I ask whether, in point of fact, assets to the value of approximately £5,000,000 or £6,000,000, held by the Bank for International Settlements on behalf of the Czecho-Slovakian National Bank, have been transferred to the German account, in spite of the fact that the Prime Minister designated this story as a mare's nest? May I also ask why the British directors on the Bank for International Settlements, Mr. Montagu Norman and Sir Otto Niemeyer, did not inform the Government of this proposed transfer; whether they agreed, as members of the Bank for International Settlements, for this transfer to take place and, finally, whether the Bank for International Settlements is the only institution in the world which has recognised the transfer of Czecho-Slovakia to Germany?
§ Captain CrookshankI think that a careful study of the reply I have given will answer all the questions which the hon. Member has put. As I have said, 1919 it is beyond the power of my right hon. Friend, because he has no means of knowing whether the statements made by the hon. Member are correct or not.
§ Mr. SandysMay I ask whether, in regard to these negotiations, it will be made quite clear that they in no wise constitute a de facto recognition of Germany's annexation of Czecho-Slovakia; and, secondly, whether it is a fact that since the taking over by Germany of the Czecho-Slovakian and Austrian shares Germany with Italy is now in control of the bank?
§ Captain CrookshankI am afraid that I cannot answer the last question without notice. As regards the first part, these are purely informal conversations between officials to see whether there is a basis for more formal discussions to deal with matters arising out of the act.
§ Mr. SandysMay I have an answer to my supplementary question? Did the Government make it quite clear, or will they now make it quite clear, that these negotiations, which are of some importance, do not in any way constitute a change of policy as regards the non-recognition of the German position in Czecho-Slovakia?
§ Captain CrookshankThat is a question which raises a much wider issue. I cannot imagine that informal discussions between officials would be held by anybody to involve a change in major policy.
§ Sir Percy HarrisIs there not the danger that while the informal discussions and talks are going on, action will be taken by the German Government?
§ Captain CrookshankAs I have explained, no action can be taken in this matter. Apart from such individual cases as those to which I have referred, no general release of these assets will be made by the Treasury.
§ Mr. A. HendersonIn view of the fact that His Majesty's Government have two representatives on the board of the Bank for International Settlements, will not the right hon. Gentleman express the Government's disapproval of the suggestion that any part of the assets of the Bank for International Settlements belonging to the late Czecho-Slovak Government should be transferred to a Government which has no right to them?
§ Captain CrookshankI think the hon. and learned Gentleman had better refresh his mind as to the position under the Protocols under which the Bank for International Settlements acts.
§ Mr. BennMay I ask the Prime Minister whether he was in possession of this information when he described the speech of the right hon. Member for Carnarvon Boroughs (Mr. Lloyd George) as a mare's nest?
§ The Prime MinisterI did not describe the speech as a mare's nest. I described an account to which the right hon. Gentleman had referred as a mare's nest, and I said that on the basis of information supplied to me by the Treasury.
§ Mr. Aneurin BevanUnder what part of the Protocols does Czecho-Slovakia lose its status with the Bank for International Settlements, and under what part of the Protocols is the status of Czechoslovakia transferred to Germany?
§ Captain CrookshankI have not said anything about the status of Czechoslovakia. I merely said what is the position of the Bank for International Settlements with regard to any assets it may have.
§ Mr. G. StraussIn view of the very unsatisfactory nature of the reply, I intend to give notice that I intend to raise this matter on the Adjournment at the earliest opportunity.