§ Sir A. MONDasked the Chancellor of the Exchequer whether he is aware that Italy is receiving 3,000,000 tons of coal per annum from Germany on account of reparations, and that her imports from this country are proportionately diminished; and whether he will take account of the saving in the normal sterling requirements of Italy in negotiating any settlement of the Italian debt?
§ Mr. CHURCHILLThe answer to both parts of the question is in the affirmative.
§ Sir A. MONDasked the Chancellor of the Exchequer whether the debts of Italy to this country are secured, in whole or in part, on Italy's reparation receipts; what is the total amount of these reparation receipts up to date; and why no steps have been taken to secure payment of at least this amount on account of the Italian debt?
§ Mr. CHURCHILLIn 1919 £30 millions of the loans made to Italy by this country were secured by a charge on Italy's first receipts from reparation subject to apari passu charge given to the United States of America in respect of loans made by them at the same time. The total amount of Italy's reparation receipts up to date is approximately £24 millions. As regards the last part of the question, it has seemed preferable to aim at a complete 1836W settlement of Italy's war debt (which I hope will be achieved within the next few weeks) rather than to deal separately with this single item of £30 millions.
§ Sir A. MONDasked the Chancellor of the Exchequer whether the Italian Government has accepted the principle that any payment made in respect of its debt to the United Spates of America will be executed pari passu with proportionate payments to this country: if so, whether he is aware that the Italian Government has made payment of 5,000,000 dollars to the United States in respect of their war debt, what is the proportionate amount payable to this country, and whether he will secure the payment of this sum before the end of this year?
§ Mr. CHURCHILLThe principle referred to in the first part of the question has been frequently stated to be an essential point in the policy of His Majesty's Government for dealing with inter-Allied debts, and I should be reluctant to think that it will be contested by any of our Allies. I understand that the Italian Government made an advance payment of 5,000,000 dollars to the United States Government on completion of their funding agreement with that Government. I expect to discuss the payment of the Italian debt to this country with the Italian Finance Minister early next month.