HC Deb 06 December 1949 vol 470 cc1707-8
62. Colonel Crosthwaite-Eyre

asked the Chancellor of the Exchequer for what reason His Majesty's Government have departed from the policy of rendering counterclaims to countries holding sterling balances, as declared to this House by the Prime Minister on 12th May, 1947.

Sir S. Cripps

There is nothing in' the statement to which the hon. and gallant Member refers which commits His Majesty's Government to render counterclaims of the sort he has in mind against countries holding sterling balances. His Majesty's Government are as anxious as ever to secure a satisfactory settlement of the problem of sterling balances but, as I informed the hon. and gallant Member on 29th November, I do not think that the presentation of such counterclaims is the right way to set about securing it.

Colonel Crosthwaite-Eyre

Is the Chancellor of the Exchequer aware that in the statement of his predecessor, to which this Question refers, the Chancellor of the Duchy of Lancaster referred to the crushing load of these debts and to the peculiar wartime accountancy which incurred them, and said that sooner or later this mass must be very substantially scaled down and that, as far as he was concerned, he would like them scaled down? May I ask the Chancellor, therefore, whether in view of that declaration he does not think that the Government have made a completely different declaration today?

Sir S. Cripps

No, I do not think so at all.

Mr. Oliver Stanley

Are we to understand that if these most important discussions were to take place the origin of these debts and the reasons for which we incurred them, will be pressed very strongly as a reason for having these debts scaled down?

Sir S. Cripps

At the moment we are discussing the matter with our American and Canadian friends. Of course, the other parties to these debts are not in the discussion.

Mr. Stanley

Even so, when it comes to discussing them, will the origin of these debts be borne in mind by the Government and be pressed as a reason for lowering them?

Sir S. Cripps

I shall obviously bear them in mind as, I am sure, will everybody else who deals with this special matter.

Colonel Crosthwaite-Eyre

How can the Chancellor say that when, according to Mr. Nehru, India has received assurances already from the British Government that as far as Indian debts are concerned, they will not be scaled down?

Sir S. Cripps

I have not seen any such assurances, but, quite obviously, we could not scale down any debts without the agreement of the other parties.