HC Deb 13 December 1955 vol 547 c164W
84. Mr. Osborne

asked the Chancellor of the Exchequer how much additional sterling has had to be paid on the United States and Canadian loans, both interest and capital repayments, because of the devaluation of sterling in 1949 from 4.03 to 2.80 dollars to the £ and what will be the estimated total additional cost when the loans are completely repaid.

Mr. R. A. Butler

The service of these loans is repaid in dollars. The sterling cost to the Exchequer of the dollar payments made since September, 1949, would have been approximately £114 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 £1,040 million.

Mr. Arbuthnot

asked the Chancellor of the Exchequer whether Her Majesty's Government will pay the interest as well as the capital due on the United States and Canadian Lines of Credit and Lend-Lease Settlement with the United States of America at the end of this year.

Mr. R. A. Butler

The fifth annual payment due on these United Kingdom debts to the United States and Canada, amounting to 176 million dollars, falls due on 31st December of this year. Her Majesty's Government have decided that, as in previous years, these payments shall be made in full on the due date.