HC Deb 07 December 1959 vol 615 cc7-9W
74 and 75. Mr. du Cann

asked the Secretary of State for Foreign Affairs (1) if he will make immediate representations to the Czechoslovak Government regarding the default on interest payments of the Skoda Works First Mortgage Debentures due to British shareholders;

(2) if he will make a statement regarding the representations made to the Czechoslovak Government by Her Majesty's Government in respect of the default on interest payments due to British shareholders of the 1922 State loan and the 1922 City of Prague loan.

85 and 86. Dr. Stross

asked the Secretary of State for Foreign Affairs with regard to the negotiations with the Czechoslovak Government in this matter, the total value of the Skoda Works first mortgage debentures held by British shareholders; the total payments to British shareholders to date; and what amount is still outstanding;

(2) with regard to the negotiations with the Czechoslovak Government in this matter, the total interest of British shareholders in the 1922 Czechoslovak State Loan and the 1922 City of Prague Loan; the total of the amounts repaid in each case; and the rate of interest payable on these loans.

Mr. R. Allan

Her Majesty's Ambassador at Prague has made representations to the Czechoslovak Minister of Foreign Affairs about the Czechoslovak Government's default on the State loan of 1922, the City of Prague loan of 1922 and the Skoda Works First Mortgage Debentures. He told the Minister that Her Majesty's Government took a serious view of the Czechoslovak Government's decision and he reserved the rights of British bondholders. I have just learned that the Czechoslovak Government have replied that they are prepared to discuss the matter with us.

The following is such information as is available to Her Majesty's Government on the Questions raised by the hon. Member for Stoke-on-Trent, Central (Dr. Stross):

CZECHOSLOVAK STATE LOAN OF 1922 AND CITY OF PRAGUE LOAN OF 1922. SKODA WORKS 6 PER CENT, FIRST MORTGAGE DEBENTURES. As the Bonds of both Loans and some of the Debentures are Bearer Bonds, it is not possible to state what the total interest of British nationals has been at different periods or the totals of the amounts which have been repaid to such persons.

The Czechoslovak 8 per cent. Sinking Fund Gold Loan of 1922 The nominal amount of the sterling issue of this State Loan in 1922 was £5,350,000. The amount outstanding in September, 1946, after revised terms had been negotiated, was £932,400. The amount at present outstanding is £143,500. Interest at 8 per cent. per annum was paid on this loan up to 1st April, 1946, and interest at 6 per cent. per annum from 1st October, 1946, to 1st April, 1959.

City of Greater Prague 7½ per cent. Mortgage Loan of 1922 The nominal amount of the sterling issue of this loan in 1922 was £1,500,000. The amount outstanding in September, 1946, after revised Terms had been negotiated, was £377,750. The amount at present outstanding is £59,500. Interest at 7½ per cent, per annum was paid on this loan up to 1st May, 1946, and interest at 6 per cent, per annum from 1st November, 1946, to 1st May, 1959.

Skoda Works 6 per cent. First Mortgage Debentures The total nominal amount of the sterling issue in 1930 of 6 per cent. First Mortgage Debentures of the Skoda Works, Plzen, was £2,500,000. In 1946, when the Company was rationalised and became the Skoda Works National Corporation, the nominal amount outstanding of the sterling issue was £1,379,150. The amount now outstanding is £610,000, of which the Paying Agents estimate the British holdings at £386,000. It is understood that a large part of the redemption of Debentures since 1946 has been of the holdings of Czechoslovak nationals. Interest at the rate of 6 per cent. per annum has been paid half-yearly on the Debentures outstanding of the sterling issue from 1930, until June, 1959.