§ Sir E. NICHOLLasked the Chancellor of the Exchequer if the Budget Estimate of £234,000,000 as the balance available for debt reduction is net or gross; and, if the latter, what is the net amount after taking into account the increase in external indebtedness due to funding of interest?
Mr. CHAMBERLAIN£234,000,000 is the Budget Estimate of cash available for debt redemption. There is no question of new borrowing except for funding purposes. The amount of debt (face value) which will be cancelled by the application of £234,000,000 cash depends on which forms of debt are cancelled and at what price. The proposals regarding postponement of payment of interest on debts 2087W owed by this Government and other Allied Governments to the United States Government, and on debts owed by Allied Governments to the British Government, do not involve any increase in the nominal capital of those debts, what is in question being deferring, not funding of interest.