HC Deb 28 May 1946 vol 423 cc985-8
54. Mr. Boothby

asked the Chancellor of the Exchequer if he will give particulars of any agreement or understanding reached at Washington between His Majesty's Government and the Government of the U.S.A. regarding the amount by which our sterling obligations were to be scaled down, and the method of repayment.

65 and 66. Mr. Hollis

asked the Chancellor of the Exchequer (1) whether, in the course of negotiations, present or future, concerning the application of Article 10 of the Washington Loan Agreement, he will bear in mind the fact that under Article 6 of that same agreement His Majesty's Government is not entitled to apply the proceeds of the U.S. Loan for the settlement of blocked sterling balances.

(2) whether there have been any discussions between His Majesty's Government and the Government of the U.S.A., or between His Majesty's Government and the holders of blocked sterling balances about the extent or nature of the proposed reduction in these balances.

67 and 73. Mr. Norman Smith

asked the Chancellor of the Exchequer (1) whether he will give an undertaking that His Majesty's Government will not, without first consulting this House, enter into any new commitments with the Government of the U.S.A. regarding the terms of the settlement of the sterling area balances under Article 10 of the Washington Loan Agreement of 6th December, 1945.

(2) the approximate amount of dollars to be ceded to holders of sterling balances; the approximate extent to which these balances are sought to be scaled down; and the approximate period during which the remaining balances are to be liquidated.

68 Mr. Douglas Marshall

asked the Chancellor of the Exchequer (1) if he will obtain, through the representatives of His Majesty's Treasury in Washington, the full and authentic text of the reference made by Mr. Vinson, Secretary of the U.S. Treasury, to the terms of the settlement of blocked sterling balances in the coarse of his evidence before the House of Representatives Banking and Currency Committee on 20th May; and if he will make the text available to hon. Members;

(2) if he will inform the House of the real rate of interest on the U.S. Loan of £937,500,000, allowing for the fact that only part of this amount will be applied for the benefit of the United Kingdom and that interest at 2 per cent, per annum will have to be paid also on that part of the Loan which will be ceded to other countries;

(3) if he is now in a position to inform the House of the net amount of the proceeds of the U.S. Loan after deductions of the maximum amount of dollars which His Majesty's Government is prepared to cede to holders of sterling balances and after deduction of the maximum amount of sterling which His Majesty's Government is prepared to make freely convertible into dollars at the holder's option.

71 and 72. Major Hugh Fraser

asked the Chancellor of the Exchequer (1) whether he will give this House a detailed account of the various proposals suggested both by His Majesty's Government and by the U.S. Government concerning the method of the settlement of the blocked sterling balances;

(2) whether representatives of His Majesty's Government regularly attend the sittings of the House of Representatives Banking and Currency Committee during the discussion of the Loan Agreement of 6th December; to what extent they dispatch regular and comprehensive reports to the Treasury; and whether he will make such reports available in the Library of the House.

Mr. Dalton

I have little to add to my reply to the hon. and gallant Member for the New Forest (Colonel Crosthwaite-Eyre) last Thursday. The obligations of His Majesty's Government are set out in Article 10 of the Anglo-American Financial Agreement. There is not, nor will there be, any additional agreement or commitment. Article 6 (i) of the Agreement will, of course, be observed, and His Majesty's Government have other resources, including existing balances and accruing receipts, out of which any commitments which may be taken to third countries can be met. The rate of interest on the loan is not affected by the objects on which it is spent. It would be premature to enter into any discussions about arrangements with holders of sterling balances, until the Loan Agreement has been approved by Congress, and the settlements themselves will be a matter for negotiations which I cannot anticipate. It would be most improper to publish confidential reports received from His Majesty's Embassy in Washington on any subject, including the proceedings of Congressional Committees.

Mr. Boothby

May I ask whether the Chancellor will give the House a categorical assurance that there is no understanding of any kind between His Majesty's Government and the Government of the United States regarding the settlement of the sterling balances, either on the amounts involved, or the methods to be used?

Mr. Dalton

I have already made it repeatedly plain that until the Loan is granted these discussions will not begin.

Mr. Norman Smith

Will the Chancellor give the House an assurance that in no circumstances will he make any arrangements with America which would prejudice our financial settlement with Egypt in the matter of transferring- military installations?

Mr. Dalton

That has nothing to do with these Questions.

Mr. Walter Fletcher

Are we to understand that discussions on sterling balances held by India are not being carried on by the Ministers there?

Mr. Dalton

They have no authority to discuss such questions.