§ 4. Mr. Osborneasked the Chancellor of the Exchequer how much additional sterling had to be provided to repay the half-yearly interest and partial capital repayment on the American loan as a consequence of devaluation, which has necessitated repayment at 2.80 dollars of borrowings calculated at over 4 dollars to the pound sterling.
§ The Economic Secretary to the Treasury (Mr. Maudling)The sterling cost to the Exchequer of the dollar payments made on 31st December, 1952, in service of the U.S. loans would have been approximately £15 million less if the dollars had been purchased at the rate of exchange prevailing in 1946. Under the loan agreements we borrowed dollars and our obligations to repay are of course expressed in the same currency. I do not accept the implication in the last part of my hon. Friend's Question.
§ Mr. OsborneCan the House be told what is the extra cost on this loan owing to devaluation if the present rate of 2.80 dollars holds instead of the previous rate at which we were charged?
§ Mr. MaudlingI thought my answer made the sterling cost very clear.
§ Mr. GaitskellIn order to save the time of the House at Questions, would the hon. Member consider supplying the hon. Member for Louth (Mr. Osborne) with a ready reckoner?
§ Sir W. SmithersWhatever the loss is, is it not a fact that the Socialist Government ruined our credit and that is why we are losing all this money?