April 10, 1957 (22nd Parliament, 5th Session)

PC

James MacKerras Macdonnell

Progressive Conservative

Mr. Macdonnell:

The question I wish to ask the minister is this. Under the original agreement made with the United States in

United Kingdom Financial Agreement Act the autumn of 1945, as I understand it, there was a clause which provided that no other loan agreement should be made with any commonwealth member on better terms than the one made in the autumn of 1945. As a result the action had to be a sort of three-cornered action, United Kingdom, United States and Canada. That arrangement has been carried through; that is to say, our agreement says that the United Kingdom may require this to be done if the government of the United Kingdom defers the payment required to be made in the same calendar year under the financial agreement between the government of the United States of America and the government of the United Kingdom, signed at Washington. The question I wish to ask is this. It would have been more satisfactory, perhaps, certainly in the view of some people, if we had an agreement which was not conditioned on the other agreement. Will the minister explain whether that was really out of the question and whether the agreement had to be carried through on the original three-cornered basis?

Topic:   UNITED KINGDOM FINANCIAL AGREEMENT ACT
Subtopic:   AMENDMENT RESPECTING DEFERMENT OF ANNUAL INSTALMENTS OF PRINCIPAL AND INTEREST
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