HC Deb 21 November 1950 vol 481 cc248-9

Motion made, and Question proposed, "That the Clause stand part of the Bill."

Colonel Crosthwaite-Eyre

Before we part with this Clause I wish to ask one thing. The Explanatory Memorandum states that the necessity for this Clause is due to an "outstanding debt" from Denmark of some £22 million. May I ask the Financial Secretary what is the definition of "outstanding debts"; what has caused them; how many they are likely to be, and any other information on the subject he can give to this Committee?

Mr. Jay

The hon. and gallant Gentleman will find the questions and answers in the Second Reading speech of my hon. Friend. Briefly an outstanding debt is an already existing long-term debt owed to a member of the European Payments Union at the time when the Union began to operate.

Colonel Crosthwaite-Eyre

Is this outstanding debt connected with sterling balances, or is it something entirely different, and if so how did it arise?

Mr. Jay

The amount of debt we have in mind here is, as I think the hon. and gallant Gentleman knows, a kroner debt by Denmark to this country, not a debt by this country to Denmark, and the purpose of this Clause is to enable the debt to be taken over from the Exchange Equalisation Account.

Clause ordered to stand part of the Bill.