Saar Territory (Loans).

Oral Answers to Questions — League of Nations. – in the House of Commons at on 18 February 1935.

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Photo of Sir Arthur Benn Sir Arthur Benn , Sheffield Park

9.

asked the Secretary of State for Foreign Affairs what arrangements are being made to safeguard the interests of British holders of loans authorised by the Saar Governing Commission?

Photo of Mr John Simon Mr John Simon , Spen Valley

Section 4 of the Agreement reached at Rome on the 3rd December, 1934, between the French and German Governments and the Saar Committee of the Council of the League of Nations, lays down that 5 per cent. of the total amount of Bank of France notes and other means of payment circulating in the Saar which are recovered…shall be assigned to the service of debts contracted by Saar natural or legal persons with the approval of the Governing Commission. This covers the loans referred to, and British holders will benefit under the arrangement equally with holders of other nationalities.

Photo of Sir Arthur Benn Sir Arthur Benn , Sheffield Park

If the 5 per cent. is not sufficient to cover the interest on the Sterling Loan and on the Gold Loan, what steps will be taken to protect the interests of British holders?

Photo of Mr John Simon Mr John Simon , Spen Valley

I cannot deal with that point in answer to a supplementary question, but the whole matter has been most carefully considered by the committee presided over by Baron Aloisi, and my understanding is that an arrangement has been made which is calculated to cover the matters referred to by my hon. Friend.