§ Sir F. WISEasked the Chancellor of the Exchequer if he can give, in sterling 899W 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. CHURCHILLI 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).
900W(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:—
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:
— 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 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.
901W(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.