HC Deb 06 December 1955 vol 547 cc186-7
30. Mr. Nabarro

asked the Chancellor of the Exchequer what sums will be required on 31st December next for capital and interest payments on the Canadian and United States loans; what sums including interest will have been paid in aggregate 1951–1955 inclusive, against these loans; and what discussions and negotiations have taken place with a view to securing repayment in sterling.

Mr. R. A. Butler

Twenty-two and a half million dollars will be required for the interest and 15.2 million dollars for the principal on the Canadian loan, and 87 million dollars for the interest and 55.4 million dollars for the principal on the United States loans. The total payments made since 1951 will then amount to 188.5 million dollars for interest and principal on the Canadian loan, and 727.4 million dollars for interest and principal on the United States loans.

The joint statement regarding the settlement of Lend-Lease, etc.—Cmd. 6708, as amended by Cmd. 8586—provides that certain limited payments may be made to the United States Government in £ sterling at their request and credited against the dollar payments due under the settlement. No discussion or negotiation on rates of interest has taken place since the conclusion of the Agreements relating to these loans.

Mr. Nabarro

In consideration of the fact that the principle is now evidently accepted by both the United States and Canada of accepting at least part payment in sterling, can my right hon. Friend say whether negotiations could not be opened with a view to future American and Canadian loan repayments being made, at least in part, in sterling as in the case of commodities?

Mr. Butler

This raises very big issues, but all that I can do is to indicate to my hon. Friend that the point which he has made will be noted.

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