HL Deb 23 October 2002 vol 639 cc103-4WA
Lord Laird

asked Her Majesty's Government:

Whether they consider that the debt owed to the United States by the United Kingdom from the First World War is still active and open to be collected; and what is the current size of that debt in sterling. [HL5929]

Lord McIntosh of Haringey

As stated in my Answers to the noble Lord on 17 July (WA 159) and 30 July (WA 161), no satisfactory agreement was reached by the countries concerned on the repayment of First World War debt following the one-year moratorium in 1931. Neither the debt owed to the United States by the United Kingdom nor the larger debts owed by other countries to the United Kingdom have been serviced since 1934, nor have they been written off.

At the time the last repayment was made the oustanding principal owed to the United States by the United Kingdom was $4,368 billion, which at 1934 exchange rates was around £866 million. At current exchange rates the principal outstanding would equate to around £2.820 billion.