HC Deb 07 February 1956 vol 548 cc1493-5
32. Colonel Crosthwaite-Eyre

asked the Chancellor of the Exchequer the total of repayments made since 1951 of sums borrowed from the United States of America and Canada in the immediate post-war years; and how much still remains to be paid.

Mr. H. Macmillan

The total payments made since 1951 to date in respect of these loans amount to 1885 million Canadian dollars for interest and principal on the Canadian loan, and 7274 million United States dollars for interest and principal on the United States loans. The total remaining to be paid is 1,6970 million Canadian dollars for interest and principal on the Canadian loan and 6,796.2 million United States dollars for interest and principal on the United States loans.

Colonel Crosthwaite-Eyre

Will my right hon. Friend take every opportunity to get these figures across to the country, since they show not only what has been paid but what remains to be paid for the nine months of frittering away by hon. and right hon. Members opposite of these loans?

Mr. H. Wilson

In case the Chancellor should be considering that partisan and ill-informed comment of his hon. and gallant Friend the Member for New Forest (Colonel Crosthwaite-Eyre), will the right hon. Gentleman also bear in mind that these loans would not have been necessary but for the cancellation of Lend-Lease, which President Truman later described as a mistake. Furthermore, will the right hon. Gentleman realise that if these loans had not been taken it would have been impossible to have fed a very large number of people, not only in this country, but in India, and, so far from their being frittered away, they saved lives?

Mr. Macmillan

Without wishing to enter into controversy, perhaps we might all agree that these loans have been incurred, this money has been spent and this immense burden hangs over us for many years to come, and we have to carry out our affairs in such a way as to be able to shoulder it.

Mr. Jay

Will the right hon. Gentleman also explain to the hon. and gallant Member for New Forest (Colonel Crosthwaite-Eyre) that large repayments were made in the immediate post-war years of dollar loans made during the war?

33. Colonel Crosthwaite-Eyre

asked the Chancellor of the Exchequer the additional burden of repayment in terms of sterling arising from the devaluation of sterling in 1949 to the latest convenient date and to the date of final redemption, respectively, of the United States and Canadian loans granted to this country in the immediate post-war years.

Mr. H. Macmillan

The service of these loans is paid in dollars. The sterling cost to the Exchequer of the dollar payments made since September, 1949, would have been approximately £100 million less if the dollars had been purchased at the rate of exchange prevailing in 1946. The corresponding figure for the period from September, 1949, to complete repayment would, on the same assumptions, be approximately £1,000 million.

Colonel Crosthwaite-Eyre

Is not this another perfect example of the legacies that were left to the present Government by hon. and right hon. Members opposite?

Mr. Macmillan

Yes, Sir, but it will stimulate us to try to bear them.

38. Mr. Grimond

asked the Chancellor of the Exchequer what further approach has been made to the United States or Canadian Governments over the currency or conditions of the repayment of their loans.

Mr. H. Macmillan

As regards the currency of repayment, no approach has been made to these Governments since publication of the Exchange of Notes of April, 1952 (Cmd. 8586). As regards other conditions, exchanges have taken place between Her Majesty's Government and the Government of the United States. We have kept the Canadian Government informed of these exchanges.

Mr. Grimond

Will the right hon. Gentleman make some statement on the progress of these negotiations and look at the Answer given by his predecessor, I think early in December, which indicated that the Government were going to consider raising the matter of the currency which is repayable?

Mr. Macmillan

Both of these are rather complicated questions, and the first is a matter of delicate negotiations in which, as the hon. Member knows, many problems are involved of our politics and of American politics particularly. The second question is highly technical, and unless the sterling repaid was either blocked or provided for in some particular way there would be no real relief.