HC Deb 26 April 1961 vol 639 cc50-1W
Sir K. Pickthorn

asked the Chancellor of the Exchequer what arrangements have been made with the Federal German Government as a result of his talks with Federal German Ministers in Bonn in March, 1961, for the advance repayment of the outstanding sum of £67,500,000 under the Agreement for the Settlement of the United Kingdom Government's Claim in respect of Post-war Economic Assistance to Germany.

Mr. Selwyn Lloyd

During my discussions with Federal German Ministers in Bonn last month it was agreed that advance repayment should be made in full of the outstanding amount of £67½ million under the Agreement of 27th February, 1953, for the Settlement of the United Kingdom Government's Claim in respect of Post-War Economic Assistance to Germany (Cmnd. 627). An Exchange of Notes between the two Governments was signed in Bonn yesterday, which provided for the repayment to be made as soon as possible under arrangements to be made between the Bank of England and the Deutsche Bundesbank.

Repayment of the sum of £67½ million will be made in a day of two:

  1. (a) as to £22½ million from the remaining proceeds of the Treasury Bond in which the balance of the £75 million sterling account (set up under 51 the Exchange of Letters of 7th June, 1957 (Cmnd. 256)) was invested; and
  2. (b) as to £45 million by drawing down sterling balances held in London by the Deutsche Bundesbank.