§ Mr. GRATTAN DOYLEasked the Chancellor of the Exchequer what are the rates of interest charged by this country on the loans for war purposes to Russia, France, Italy, Belgium, and other Allies; and if there is any agreement as to how and when such loans shall be repaid?
Mr. CHAMBERLAINThe conditions vary in different cases. We have charged no interest on the pre-Armistice debt of Belgium, Serbia and Montenegro. Further, in the case of Belgium, the French, American and British Governments have agreed to accept German Bonds for the amount of Belgium indebtedness. In other cases interest is calculated either at 5 per cent. or at bank rate, and is added to the principal of the loans outstanding, so that no payments of interest on pre-Armistice debt have ever been received by us, except in respect of a single special transaction where special arrangements were made. Negotiations as to the future treatment of debt between the Allied and Associated Governments are now proceeding and His Majesty's Government have expressed their willingness to extend to their debtors similar74W treatment to that which may be arranged in respect of their own debt.