HC Deb 19 June 1950 vol 476 cc860-1
57. Mr. John Foster

asked the Secretary of State for Foreign Affairs whether any representations have been made or are intended to be made by His Majesty's Government with regard to the default by Italy of her guarantee for the capital repayment of the drawn bonds of the 4½ per cent. Austrian Guaranteed Loan.

Mr. Ernest Davies

In June of last year His Majesty's Ambassador in Rome informed the Italian Government that in the opinion of His Majesty's Government the Italian Government, under the terms of the guarantee, were under an unqualified obligation to meet payments due in respect of this loan His Majesty's Government will continue to press the Italian Government to meet its obligations.

Mr. Foster

Is the Under-Secretary aware that there has been a subsequent default?

Mr. Davies

Yes, Sir.

Mr. Nicholson

Roughly, what is the sum involved?

Mr. Davies

I should want notice of that question.

Mr. Keeling

Does the Italian Government dispute its liability?

Mr. Davies

Yes, Sir, the Italian Government issued a statement to that effect some time ago.