HL Deb 18 January 1949 vol 160 cc5-7

2.43 p.m.

LORD WOOLTON

My Lords, I beg to ask the Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask His Majesty's Government why under Article 6A of the Paris Reparations Agreement and the relative Accounting Rules covering the disposal of German assets under the jurisdiction of His Majesty's Government, they propose not to avail themselves of their right to treat such assets, in so far as legitimate contract claims of British nationals exist against them, as British assets not accountable to the Reparations Pool.]

THE MINISTER OF CIVIL AVIATION (LORD PAKENHAM)

My Lords. His Majesty's Government are at the moment considering representations which have been made to them that unsecured contract claims by United Kingdom creditors against German debtors should be satisfied out of monies formerly belonging to the debtors and now in the possession of the Custodian of Enemy Property. Meanwhile, however, they wish to make the following statement on procedure.

The rules of the Inter-Allied Reparation Agency require that claims of this kind must be filed with Governments before January 24, 1949. The time left for the presentation of claims is therefore short. In the circumstances His Majesty's Government are prepared to accept pro forma applications from all persons in the United Kingdom to whom any person in Germany owes money, and who believe that at the outbreak of war the German debtor held assets in this country, to have those assets used towards payment of their debts. Any United Kingdom creditor who has not already registered the debt owing to him with either the Board of Trade, the Trading with the Enemy Department, or any of the United Kingdom Custodians of Enemy Property, should notify the Administration of Enemy Property Department, 32, Warwick Street, Regent Street, London, W.1, before January 24. Those who have already registered the debts owing to them are invited to write to the Administration of Enemy Property Department at an early date (though this need not be during this week) giving reference to the previous correspondence, and naming—where this has not already been done—any assets which, to the best of their belief, were held by their debtors in this country at the outbreak of war.

Because of the short notice which has been given of His Majesty's Government's intention of considering this matter further, His Majesty's Government will be prepared to consider what treatment should be given, should the circumstances require it, to cases which have not been notified by January 24. For the moment, all that is required front creditors is a simple notification of the debt and of any assets in the United Kingdom which they have reason to believe were held by their debtors at the outbreak of war. It should be emphasised that His Majesty's Government's present action does no more than safeguard the position of creditors, should the eventual decision be that the United Kingdom should avail itself of its rights under Article 6A of the Final Act of Paris on Reparation.

2.46 p.m.

LORD WOOLTON

My Lords, arising out of the last paragraph of the noble Lord's Statement—a Statement of which he had, with his customary courtesy, given me a copy—which reads as follows: It should be emphasised that His Majesty's Government's present action does no more than safeguard the position of creditors, should the eventual decision be that the United Kingdom should avail itself of its rights under Article 6A of the Final Act of Paris on Reparation. may I ask whether His Majesty's Government appreciate that, the Government of the United States, and doubtless the Governments of others of the United Nations, are in fact availing themselves of this right, by discharging claims of their nationals against the German former owners of the assets in question? Is the noble Lord aware that if His Majesty's Government fail to do likewise, this will have the effect of reducing, to the benefit of our former Allies, the British share of reparations ultimately extracted from Germans? May I also ask that the widest publicity should be given to the noble Lord's reply? I am sure he will appreciate that, as it is now January 18 and the date he gives is January 24, not very much time is given for people to take the necessary steps.

LORD PAKENHAM

I have no doubt that the considerations mentioned by the noble Lord at the beginning of his supplementary question have been fully borne in mind but I will make sure that they are once more attended to. I am hopeful that the consequences to which he referred later in the question will not occur, but I will most assuredly give the fullest undertaking that it is the intention of the Government to take every possible step to ensure that the widest publicity will be given to this announcement.

VISCOUNT SWINTON

My Lords, if there is any doubt as to the propriety and wisdom of availing ourselves of the Article to which reference has been made, may I ask whether it is not a fact that after the First World War the Custodian of Enemy Debts held all the property of ex-enemies in this country for the very purpose of meeting, in the first place, claims of creditors here; that that was recognised as right and reasonable, and that it worked admirably? Why should not that precedent be followed, I would almost say as a matter of course, at the present time?

LORD PAKENHAM

I have no doubt that any precedent that worked well after the First World War is being and has been carefully studied. I cannot confirm that what the noble Viscount has just informed us is the fact, but I will gladly take it from him that it is so. I was not in full circulation myself just after the First World War. I hope that both the noble Lord and the noble Viscount will allow me to inform them privately of the full position in all its details.