§ Mr. Ecclesasked the Chancellor of the Exchequer whether he is now in a position to make a statement regarding his decision on Article 6A of the Final Act of the Paris Conference on Reparation.
§ Mr. Glenvil HallYes. This question concerns the claims of United Kingdom pre-war creditors of German debtors to have their claims met so far as possible, out of any assets of their debtor which may be in the hands of the Custodian of Enemy Property. I have taken this occasion to consider a larger issue: the disposal of all German assets in the hands of the Custodian.
By the decisions taken at the Potsdam Conference in July, 1945, and at the Paris Conference on Reparations in November-December, 1945, we are entitled to seize these assets as part of our share of reparations. Up to now no decision has been taken on this matter and the alternative courses of action which the Government could take were outlined by my hon. Friend the Economic Secretary to the Treasury when this subject was debated on 20th January last.
I have carefully considered the matter and have come to the conclusion that the precedent established on the Treaty of Versailles should be followed and that the assets should be used, so far as they will go, to meet the pre-war contract claims which our creditors have on residents in Germany and the former German Reich Government. The dividend payable will not be large.
The question has been raised in this House of the position of those creditors who, but for the war, would have been in a position to proceed against and, if 58W successful, attach the property of their debtors. My proposal is that these creditors should be given the alternative of claiming against these assets or of taking their place in the general distribution to which I have just referred. In so far as claims are admitted against particular assets, there may be some advantage to our other reparation receipts because of the operation of Article 6A of the Final Act of the Paris Conference to which the hon. Member refers.
The task of distributing the assets amongst the various classes of creditors will not be an easy one and will require legislation. A Bill will accordingly be introduced in the near future. This Bill will provide for the appointment of an Administrator who will be responsible for the execution of the scheme and will be clothed with adequate powers to make a final disposition of the property. It is my intention to appoint a representative Advisory Committee before the scheme comes fully into operation to advise the Administrator generally on the classes of debts to rank for payment, the scheme of division, what priorities, if any, should be established, and any other matters of a like kind on which the Administrator considers their advice might be useful.