§ Mr. Bradley
asked the Minister of Aviation whether the loans made by British Overseas Airways Corporation to British Overseas Airways Corporation-Cunard Limited for the purpose of acquiring aircraft now pay interest at a 156W commercial rate; and if he will make a statement.
§ Mr. Mulley
The interest-free loan made by B.O.A.C. to B.O.A.C.-Cunard was, as I explained to the House in the debate on the Air Corporations Bill, a proper transaction within the commercial discretion of B.O.A.C. I understand, however, this loan is being repaid and replaced as from the 1st July, 1966 by a loan at a commercial rate of interest.