§ 1. Mr. A. M. SAMUEL
asked the Secretary of State for Foreign Affairs whether, with regard to the reconstruction loan which Hungary proposes shortly to issue in London, he will, before His Majesty's Government sanctions its issue here, take steps to see that the Hungarian Government settles with its British creditors those claims which have been admitted by the Anglo-Hungarian clearing offices for debts, or have been adjudicated upon by the Anglo-Hungarian Mixed Arbitral Tribunal?
§ 2. Sir CYRIL COBB
asked the Secretary of State for Foreign Affairs whether the Hungarian Government has, in accordance with the terms of the Treaty of Trianon, made the payments due to the Anglo-Hungarian clearing house in respect of established British claims; and, 2090 If the full payment have been made, will he notify the Hungarian Government that payment must be made out of the proceeds of the loan about to be raised in London by the Hungarian Government?
§ The PARLIAMENTARY SECRETARY to the BOARD of TRADE (Mr. A. V. Alexander)
I have been asked to reply to these questions. As regards the provision of funds for payment of admitted Clearing Office debts, I would refer the hon. Members to the agreement concluded with the Hungarian Government in 1922, and presented to this House (Crud. 1643), in accordance with which the Hungarian Clearing Office is to meet the balances due from it by means of half-yearly instalments. The amount of the instalments has since been temporarily reduced to £100,000 half-yearly, pending the balancing of the Hungarian Budget, by means of the reconstruction scheme of which the loan referred to is an essential part. I have no reason whatever to suppose that the Hungarian Government will fail to make the payments due from it under these arrangements, and see no reason for making a special notification to them. I would add that the sanction by His Majesty's Government is not required for the issue of loans by foreign Governments in this country.
§ Mr. SAMUEL
What is the good of an agreement if it is suspended? Is the hon. Gentleman aware that large sums of money are due to British commercial people, and that Hungary does not fulfil its engagements to the Clearing House for Enemy Debts? Is not this an opportunity to impress on the Hungarian Government, before they borrow more money from English investors, that they must fulfil their earlier obligations to British creditors?
§ Mr. ALEXANDER
The answer is already given in my reply. There is no reason to take that point of view.
§ Mr. SAMUEL
Is the hon. Gentleman aware the assertion that there is no reason to take that point of view does not pay butchers' and bakers' bills of British creditors, to whom the debts are due? The fact of non-fulfilment of Hungary's Treaty obligations should be impressed upon Hungary before she is allowed to incur fresh debts here.