HC Deb 09 December 1948 vol 459 cc562-3
57. Colonel J. R. H. Hutchison

asked the Chancellor of the Exchequer how much of the 310,000,000 dollars line of credit has been drawn on to date; and how much of this sum has been devoted to the purchase of capital equipment for industry.

Mr. Jay

E.C.A. have not yet notified us how much of the E.R.P. assistance received to date is to be regarded as a loan, although we expect that it will be approximately 25 per cent. We have so far received a total of 470 million dollars, of which 348 million dollars have been notified as grants and corresponding amounts of sterling have been credited to the Special Account. The balance of 122 million dollars is being held in suspense pending notifications from E.C.A. as to how it should be treated. The second part of the Question does not, therefore, arise.

Colonel Hutchison

Does not the Loan Agreement dated 26th October lay down clearly how much is to be treated as a loan, namely, 310 million dollars; and how does industry or an industrial concern make application for a part of this loan in order to install new capital equipment?

Mr. Jay

If industry wants to install capital equipment, it makes application to the Government in the normal way, and the finance, both by way of grant and by way of loan, covers the normal import programme of the Government.