HC Deb 09 November 1926 vol 199 cc898-901W
Sir F. WISE

asked the Chancellor of the Exchequer if he can give, in sterling at $5 to the pound, the total war indemnities due to the United States, the annual payments, the interest charged, the period of the loans, and the total payment over the period?

Mr. CHURCHILL

I assume that my hon. Friend desires particulars of all payments due to the United States either from Germany in respect of reparation and similar obligations or from other European Governments in respect of loans made by the United States during and immediately after the War. The following particulars are drawn up on this assumption; but I do not consider that the term "war indemnities" can properly be applied to either class of payment; and it is obviously inappropriate to payments due on loans.

(1) Payments to the United States of America in respect of German, Reparation and similar obligations.

Under the provisions of the Paris Agreement of 14th January, 1925, sums to be paid by Germany to the United States in respect of reparation and cost of occupation are a charge on the annuities payable under the Dawes Plan.

Under Article 3 of this Agreement the United States are entitled to receive the sum of 55 million gold marks (£2,750,000) each year from 1st September, 1926, till the outstanding costs of the American Army of Occupation (amounting to about £49 millions) are extinguished. This payment is a first charge on cash transferred out of the Dawes Annuities after the provision of the sums necessary for the service of the international loan and for the current costs of the various Inter-Allied Commissions.

Further, under the same Article the United States are entitled to 2¼ per cent. of all receipts from Germany on account of the Dawes Annuities available for distribution as reparations, provided that the annuity resulting from this percentage shall not in any year exceed the sum of 45 million gold marks (£2,250,000). The amount that is being paid to the United States in respect of this percentage for the two years to 31st August, 1926, was 34,880,000 gold marks (£1,744,000) and the amount payable during the year ending 31st August, 1927, is 24,326,000 gold marks (£1,216,300).

(2) Payments to the United States of America in, respect of War and post-War debts of other European Governments.

The War and post-War debts due by other European Governments to the United States Government, as stated in American publications, and the total payments to be made over a period of 62 years in the case of the debts which have been the subject of funding agreements are as follows:—

Principal Debt as funded. Aggregate amount of payments to be received over the 62 years period.
£ £
Great Britain 920,000,000 2,221,193,000
France 805,000,000 1,369,534,820
Italy 408,400,000 481,535,500
Belgium 83,556,000 145,566,100
Poland 35,712,000 87,137,510
Czechoslovakia 23,000,000 62,562,287
Serb-Croat-Slovene State. 12,570,000 19,035,527
Roumania 8,918,000 24,501,252
Estonia 2,766,000 6,666,228
Finland 1,800,000 4,339,011
Lithuania 1,206,000 2,906,388
Latvia 1,155,000 2,791,727
Hungary 387,800 938,648
Total 2,304,470,800 4,428,707,998
The rate of interest charged is 3 per cent. for 10 years and 3½ per cent. for the following 52 years, except in the cases of Belgium, France, Italy and the Serb-Croat-Slovene State, in which cases the rates charged are the following:

Belgium.—No interest on pre-Armistice debt.

Interest on post-Armistice debt at reduced rates for 10 years: thereafter 3½ per cent.

France.5 years, nil; 10 years, 1 per cent.; 10 years, 2 per cent.; 8 years, 2½ per cent.; 7 years, 3 per cent; 22 years, 3½ per cent.

Italy.—5 years, nil; 10 years, ⅛ per cent.; 10 years, ¼ per cent.; 10 years, ½ per cent.; 10 years, ¾ per cent.; 10 years, 1 per cent.; 7 years, 2 per cent.

Serb-Croat-Slovene State.—12 years, nil; 3 years, ⅛ per cent.; 14 years, ½ per cent. 3 years, 1 per cent.; 3 years, 2 per cent; 27 years, 3½ per cent.

(The agreement relating to the French Debt has not yet been ratified by the Legislature of either country and that

THE ANNUAL PAYMENTS in the case of the most important Debts are as follows:—
United Kingdom. France. Belgium. Italy.
£ £ £ £
1922–5 96,386,000
1926 32,180,000 6,000,000 768,000 1,000,000
1927 32,030,000 6,000,000 820,000 1,000,000
1928 32,250,000 6,500,000 940,000 1,000,000
1929 32,118,000 6,500,000 1,090,000 1,000,000
1930 32,156,000 7,000,000 1,240,000 1,000,000
1931 31,988,000 8,000,000 1,460,000 2,924,250
1932 32,220,000 10,000,000 1,590,000 2,941,225
1933 36,780,000 12,000,000 1,690,000 2,958,175
1934 36,556,000 15,000,000 1,810,000 3,015,100
1935 36,332,000 16,000,000 1,910,000 3,091,950
1936 36,108,000 18,000,000 2,534,500 3,188,700
1937 36,884,000 20,000,000 2,543,300 3,325,325
1938 36,625,000 21,000,000 2,551,400 3,401,775
1939 36,366,000 22,000,000 2,538,800 3,518,125
1940 37,107,000 23,000,000 2,546,200 3,634,325
Ten years—1941–50 364,102,000 249,000,000 25,381,900 47,341,300
Ten years—1951–60 361,422,000 250,000,000 25,405,500 69,938,300
Ten years—1961–70 362,730,000 250,000,000 25,416,300 94,791,750
Ten years—1971–80 370,983,000 250,000,000 25,496,500 123,662,000
1981–84 147,847,000 100,000,000 10,263,600 60,858,400
1985–87 73,534,820 7,570,100 47,944,800
Total 2,221,193,000 1,369,534,820 145,566,100 481,535,500

In addition to the above Debts, the following have not yet been the subject of funding agreements:—

Principal and Interest to 15 November, 1925.
£
Armenia 3,091,838
Greece 3,600,000
Russia 52,198,280
There is also a post-war debt of £6,254,484 due by Austria, the payment of which has been postponed for a period of 20 years.