HC Deb 01 August 1963 vol 682 cc633-4
25. Mr. Box

asked the Chancellor of the Exchequer if he will give details of the amount of the United States loan of 1946, the amount now owing, the amount of annual interest repayments, and the year when repayment of the loan is expected to be completed.

Mr. du Cann

The terms of relevant Agreements first effective in July, 1946, are contained in two White Papers, Cmd. 6708 and Cmd. 178.

Total drawings were $3,750 million. The amount outstanding is $3,345 million; that is $3,205 million principal, and $140 million deferred interest. Interest, payable at 2 per cent. per annum on the balance outstanding, amounted in 1962 to $68 million.

If no further instalments of principal are deferred, and payment of the instalment and interest deferred so far is not accelerated, the final payment will be made in the year 2002.

Mr. Box

Is my hon. Friend aware that I have received information from the statistical department of the Library that, as a result of the devaluation of 1949, we are now in the extraordinary position of owing considerably more about 16 years after this loan was made? Can he honestly foresee this loan ever being repaid if we suffer the misfortune of a Labour Government in the future, followed by the inevitable further devaluation of the £?

Mr. du Cann

One point I should like to make clear is that Great Britain has set an honourable example in debt repay- ments, and I would hope to see that followed. As to the last part of my hon. Friend's supplementary about a potential Labour Government, we all hope to avoid that misfortune.

Mr. Callaghan

Does the Economic Secretary propose to leave his hon. Friend's statement about devaluation at that? Has he no more words to say about it than that, or would he prefer me to ask him some questions now about the future course of the £ over the next few months?

Mr. du Cann

The hon. Gentleman can table a Question. If he wishes me to answer about the Government's economic policies at this moment, let me say to him very clearly that I have every confidence in them, and so apparently have people abroad, as witness the strength of the £ at the present moment. There is no question whatsoever of devaluation, and it is foolish to pretend that it exists.

Mr. Callaghan

Is the hon. Gentleman aware that I am extremely glad that he has spoken for both sides of the House in his last answer?