United States and Canadian Loans

Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 12th December 1957.

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Photo of Mr Geoffrey Rippon Mr Geoffrey Rippon , Norwich South 12:00 am, 12th December 1957

asked the Chancellor of the Exchequer whether it is the Government's intention to pay this year's instalments of capital and interest on the United States and Canadian loans when they fall due on 31st December.

Photo of Mr Douglas Jay Mr Douglas Jay , Battersea North

asked the Chancellor of the Exchequer the Government's intentions in regard to the debt payments due at the end of this month arising from the United States and Canadian Loan Agreement of December, 1945.

Photo of Mr John Cronin Mr John Cronin , Loughborough

asked the Chancellor of the Exchequer if, having regard to the circumstance that the December gold and dollar reserve figures will be diminished by about 190 million dollars, which represents the interest and capital payments due on the United States, Canadian and other loans, he intends to ask for deferment of these payments or make further borrowings.

Photo of Mr Nigel Birch Mr Nigel Birch , Flintshire West

My right hon. Friend hopes to announce a decision next week.

Photo of Mr Geoffrey Rippon Mr Geoffrey Rippon , Norwich South

While acknowledging that there is no question of default in this case, will my right hon. Friend, in considering this matter, bear in mind that we are entitled to claim only seven such deferments in this century, and that if the deferment is claimed we shall have to pay interest on the interest? Is my right hon. Friend aware, furthermore, that the Government gave an assurance at the time that the new Agreements were entered into that it was not proposed to claim the major part of these deferments in the early years after the new Agreements? Can my right hon. Friend say further—

Photo of Mr William Morrison Mr William Morrison , Cirencester and Tewkesbury

Order. I think the hon. Member has given quite a mouthful already to the Economic Secretary.

Photo of Mr Nigel Birch Mr Nigel Birch , Flintshire West

I can assure my hon. Friend that all relevant considerations will be borne in mind.