§ 62. Mr. Harold Daviesasked the Chancellor of the Exchequer the amounts outstanding of Japanese loans; and what discussions have taken place with the Japanese with a view to them paying off these loans.
§ Mr. R. A. ButlerOutstanding Japanese sterling loans, including those with options for payment in other currencies are estimated at about £62 million. Arrears of interest amount to about £33 million. I am glad to say that the Japanese Government have now indicated their readiness to start negotiations with the bondholders for a settlement of outstanding indebtedness.
§ Mr. Robson Brownasked the Chancellor of the Exchequer to what extent Her Majesty's Government will insist that the Japanese Government shall stand by the undertaking that she would repay with capital and interest on Japanese bonds at the rate of 4.02 dollars to the £.
§ Mr. R. A. ButlerI have no reason to doubt recent reports that the Japanese Government intend to honour, at the appropriate rates of exchange, the dollar option clauses in certain Japanese bonds. Her Majesty's Government are certainly concerned to uphold the sanctity of all such contractual obligations.