HC Deb 12 December 1957 vol 579 cc1416-7
38. Mr. Rippon

asked the Chancellor of the Exchequer whether it is the Government's intention to pay this year's instalments of capital and interest on the United States and Canadian loans when they fall due on 31st December.

40. Mr. Jay

asked the Chancellor of the Exchequer the Government's intentions in regard to the debt payments due at the end of this month arising from the United States and Canadian Loan Agreement of December, 1945.

41. Mr. Cronin

asked the Chancellor of the Exchequer if, having regard to the circumstance that the December gold and dollar reserve figures will be diminished by about 190 million dollars, which represents the interest and capital payments due on the United States, Canadian and other loans, he intends to ask for deferment of these payments or make further borrowings.

Mr. Birch

My right hon. Friend hopes to announce a decision next week.

Mr. Rippon

While acknowledging that there is no question of default in this case, will my right hon. Friend, in considering this matter, bear in mind that we are entitled to claim only seven such deferments in this century, and that if the deferment is claimed we shall have to pay interest on the interest? Is my right hon. Friend aware, furthermore, that the Government gave an assurance at the time that the new Agreements were entered into that it was not proposed to claim the major part of these deferments in the early years after the new Agreements? Can my right hon. Friend say further—

Mr. Speaker

Order. I think the hon. Member has given quite a mouthful already to the Economic Secretary.

Mr. Birch

I can assure my hon. Friend that all relevant considerations will be borne in mind.