HC Deb 22 February 1944 vol 397 cc657-8
60 Mr. Hammersley

asked the Chancellor of the Exchequer (1) whether he is aware that the Government of the United States allow the Danish Minister access to Danish dollar balances and the control of the revenues from Greenland, thus enabling the interest to be paid on Danish dollar bonds; and will he adopt a similar policy with the Danish Minister in London;

(2) whether he is aware that the Danish Government has paid the interest on Danish Government Bonds to the holders in all European countries, but that British holders of Danish bonds cannot be paid because the Treasury have blocked Danish sterling balances in London; and will he take steps to rectify this inequality;

(3) why the British Government has refused the Danish Minister access to Danish balances of between £2,000,000 and £3,000,000, thus preventing the Danish Government from paying interest to British holders of Danish bonds.

Sir J. Anderson

I have no detailed information about the action of the U.S. Government in this matter, but their legislation is in any case different from ours. Under the Trading with the Enemy legislation in this country, moneys which would otherwise have been payable to persons in Denmark, are payable to the Custodian of Enemy Property with a view to their preservation. Suitable arrangements will be made for their disposal after the liberation of Denmark, but I cannot authorise any special arrangements for the payment of interest on Danish Government bonds at the present time.

Mr. Hammersley

In view of the fact that there are large balances which are properly due to the Danish Government, could not some relaxation of the ban on those balances be made?

Sir J. Anderson

No, Sir. In the first place, according to my information, most of the money blocked in this country is payable to persons other than the Danish Government. Second, there is no reason why bondholders should get preferential treatment over other business creditors, for example, trade creditors. Lastly, no Danish money was ear-marked in this country prior to the war for the discharge of these obligations.

Mr. Hammersley

Has my right hon. Friend taken into account the money due to the Danish Government for Danish shipping taken over?

Sir J. Anderson

The Government are acting strictly in accordance with the law of this country.

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