HC Deb 03 July 1959 vol 608 cc80-3W
Mr. Gresham Cooke

asked the Chancellor of the Exchequer whether he will now make a statement about the results of the bilateral negotiations for the settlement of the United Kingdom's outstanding debts and claims following the liquidation of the European Payments Union.

Mr. Amory

Yes. Command Papers containing the Agreements reached with the other Governments concerned have been presented to Parliament and copies are now available in the Vote Office.

The agreed terms of repayment have been notified to the Organisation for European Economic Co-operation. These

TABLE I
SUMMARY OF TERMS BILATERALLY AGREED FOR THE SETTLEMENT OF U.K. DEBTS AND CLAIMS ESTABLISHED ON THE LIQUIDATION OF THE EUROPEAN PAYMENTS UNION
(Amounts shown approximately in sterling: repayments are generally in Creditor currencies)
— Total balance to be repaid Covered by Pre-1959 Agreements Covered by New Agreements Period of Repayment Timing of Instalments Rate of Interest per annum (from 16th January 1959) Remarks
CREDITOR COUNTRIES £ million £ million £ million Per cent.
Austria 2.7 0.5 — 8 months semi-annual 3 Offset against U.K. postwar claims.
— 2.2 1½ years semi annual 2¾
Belgium 23.6 13.2 — 2½ years semi-annual 3
— 10.4 2¾ years semi-annual 2¾
Denmark 0.4 n.a. 0.4 — — — Repaid in full by offset of part of Danish "Existing Resources" debt.
Germany 95.7 95.7 n.a. 12½ years annual 3 Offset against annual instalments of £7.5 million under German Debt Agreement.
Greece 0.4 n.a. 0.4 — — 2 Repaid in full on 2th9 May, 1959.
Italy 1.2 n.a. 7.2 2¾ years semi-annual 2¾
Netherlands 20.9 16.1 — — — — Repaid in full by offset against U.K. war-time claims.
— 4.8 2¾ years semi-annual 2¾
Sweden 8.6 4.6 — 2½ years semi-annual 3
— 4.0 2¾years semi-annual 2¾
Switzerland 7.1 6.4 — 1½years semi-annual 3
— 0.7 1½years semi-annual 2½
DEBTOR COUNTRIES
France 27.2 n.a. 27.2 6⅔ years 4 annual instalments commencing 1st September, 1962 4
Iceland 0.2 n.a. 0.2 7 years annual 3¼
Norway 1.4 n.a. 1.4 7 years annual 4
Portugal 1.0 n.a. 1.0 — — 2 Repaid in full on 10th March, 1959.
Turkey 1.5 n.a. n.a. 7 years monthly 2¾ Repayment through European Fund on terms laid down in an O.E.E.C. Council Decision of 1955.
"n.a."= not applicable.

terms and the annual phasing of the United Kingdom's payments and receipts are summarised in the following tables:

TABLE II
PHASING OF UNITED KINGDOM PAYMENTS AND RECEIPTS UNDER BILATERAL AGREEMENTS ARISING OUT OF THE LIQUIDATION OF THE EUROPEAN PAYMENTS UNION
£ millions
— Years ending 31st December Total Debts/ Claims
1959 1960 1961 1962 1963 1964 1965 1966 1967–71
A. DEBTS
Austria 1.3(a) 1.4 — — — — — — — 2.7
Belgium 6.1 8.8 8.8 — — — — — — 23.6
Denmark 0.4(b) — — — — — — — — 0.4
Germany 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 35.7(d) 95.7
Greece 0.4 — — — — — — — — 0.4
Italy 2.4 2.4 2.4 — — — — — — 7.2
Netherlands 17.7(c) 1.6 1.6 — — — — — — 20.9
Sweden 2.2 3.2 3.2 — — — — — — 8.6
Switzerland 2.4 4.7 — — — — — — — 7.1
Total Payments 40.3 29.6 23.4 7.5 7.5 7.5 7.5 7.5 35.7(d) 166.5
B. CLAIMS
France — — — 6.8 6.8 6.8 6.8 — — 27.2
Iceland — 0.02 0.02 0.02 0.02 0.02 0.02 0.02 — 0.2
Norway — 0.2 0.2 0.2 0.2 0.2 0.2 0.2 — 1.4
Portugal 1.0 — — — — — — — — 1.0
Turkey 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.02 — 1.5(e)
Total Receipts 1.2 0.4 0.4 7.2 7.2 7.2 7.2 0.2 — 31.3
Total Net 39.1 29.1 23.0 0.3 0.3 0.3 0.3 7.3 35.7 (d) 135.2
NOTE: Differences between individual amounts and totals are due to rounding.
(a) Including £0.5 million offset against United Kingdom claims on account of post-war debt.
(b) Offset against United Kingdom claims on account of "existing resources".
(c) Including £16.1 million offset against United Kingdom claims on account of war-time debt.
(d) From 1st August, 1967, United Kingdom payments will be directly offset against claims on Germany on account of post-war debt at a rate of £7.5 million per annum.
(e) Being repaid through European Fund under O.E.E.C. Council Decision of 1955.