HC Deb 01 November 1949 vol 469 cc205-6
52. Mr. Keeling

asked the Chancellor of the Exchequer what reply he has received to the further representations which he made to the Italian Government to use part of their sterling credit to end their default on the drawn bonds of the Austrian Conversion Loan in British hands.

The Economic Secretary to the Treasury (Mr. Douglas Jay)

I am sorry to say that the Italian Government still refuse to acknowledge their liability.

Mr. Keeling

But is it not a fact that Italy acknowledged her liability but said she could not pay yet?

Mr. Jay

The Italian Government are not willing at present to carry out their liability, and we have made representations to the effect that we think this liability should be carried out.

Mr. Keeling

Have the Government drawn the attention of Italy to the fact that her sterling balances recently totalled as much as £40 million, and have they also reminded her that our treatment of her financially since the war has been exceptionally generous?