Oral Answers to Questions — Malayan and Hong Kong Loans (Payment of Interest).

Part of the debate – in the House of Commons on 5th August 1942.

Alert me about debates like this

Photo of Mr Harold Macmillan Mr Harold Macmillan , Stockton-on-Tees

Interest payments on the sterling loans issued in London will be met as a matter of obligation. As regards the local dollar borrowings of the Malayan Governments and municipalities, and also of the Hong Kong Government, the obligation is to meet the services of such loans locally in the local currencies, and holders have no legal claim to be paid elsewhere or in any other currency. But in order to avoid hardship His Majesty's Government have decided that, subject to certain reservations, interest shall be paid out of the resources here which are available to the representatives of the respective borrowing authorities. These payments can only be ex gratia and subject to adjustment in any particular case if this is subsequently found to be necessary. Such payments will be made to individuals in British or Allied territory and to organisations and corporations which have no establishments in enemy or enemy occupied territory. Notice of the detailed arrangements affecting stock holders will be published shortly.