§ 46. Mr. HACKINGasked the Prime Minister whether, as one of the conditions upon which financial support will be given to India, he will insist that a preference shall be given to British goods entering that country?
§ 47. Mr. HACKINGasked the Prime Minister whether, before granting financial support to India he will insist upon a definite undertaking that the boycott against British goods entering India shall cease?
§ 49. Captain Sir WILLIAM BRASSasked the Prime Minister whether he will take into consideration, when settling the suitable conditions under which financial assistance shall be offered to India, that one of such conditions shall be the safeguarding of the liberty to sell Lancashire cotton goods in India, which is at present being denied to our traders?
§ 50. Mr. SANDHAMasked the Prime Minister whether the Government, in considering the question of financial aid to India, took into account the practicability of purchase by the Government from Lancashire mills of supplies of cotton cloth, suitable for use in India, such supplies to be placed at the disposal of India on long-term credits, in order to check the decline of the industry in Lancashire?
51. Sir F. HALLasked the Prime Minister what are the guarantees and safeguards attached to the offer of financial support from the Imperial Govern- 1260 ment to the Government of India; and if he will arrange for a White Paper to be issued setting out the terms of the financial arrangements which have been agreed to by the Government?
§ 52. Mr. HAMMERSLEYasked the Prime Minister for what reason he proposes that financial support should be given at the expense of the British taxpayer to maintain the credit of India, in view of his refusal to use British credit to reorganise British industries?
§ 53. Mr. BRACKENasked the Prime Minister whether he can give the House an estimate of the contingent liability incurred by Great Britain under the proposal to give financial support to the credit of India?
§ The PRIME MINISTER (Mr. Ramsay MacDonald)The purpose of the statement I made on 26th June was to remove apprehensions pending the settlement of the constitutional problem and the formulation of provisions which will ensure the maintenance of India's credit. No occasion for giving financial assistance to the Government of India has arisen, and I trust and believe no such occasion will arise. If it did, the consent of Parliament would of course be required, and the opportunity would then be available to discuss the conditions under which assistance could be given. As regards the boycott of British goods, I would refer to previous statements made by my right hon. Friend the Secretary of State for India, and as regards economic concessions, I may say at once that the Government do not contemplate in this connection any measures that would interfere with the operation of the Fiscal Autonomy Convention which has now been in force for a number of years.
§ Mr. CHURCHILLMay I ask the Prime Minister whether the important declaration made by him the other day was made upon the sole authority of His Majesty's Government, or whether it has been the subject of consultation with the leaders of other parties?
§ The PRIME MINISTERI am afraid that I cannot charge my memory definitely at the moment as to what the operation was, but certainly it was communicated to the leaders of the parties. Whether they were consulted or not, I am not very sure.
§ Mr. CHURCHILLMay I ask the right hon. Gentleman whether, in view of the very grave and far-reaching issues which have necessarily and inevitably been raised by his declaration—the merits of which I am not discussing—he will arrange for the House to have an early opportunity of debating this question?
§ The PRIME MINISTERThe Debate undoubtedly will come if and when it is necessary to bring the matter before the House in the form of leave to make whatever grant or arrangement may be necessary in order to implement that statement.
§ Mr. SANDHAMI want to raise a point of Order. In consequence of the fact that I have a question on the Paper, No 50, applying to this matter, and the right hon. Gentleman the Member for Epping (Mr. Churchill) has no question on the Paper, may I ask that the questions on the Paper should be dealt with before matters affecting right hon. Gentlemen, who have no questions down?
§ Mr. SPEAKERWe are dealing with the questions on the Paper.
§ Mr. CHURCHILLMay I ask leave of the right hon. Gentleman——
§ Mr. BROCKWAYOn a point of Order. May I ask whether it is not a rule of this House that when Members have questions on the Paper, and they rise to put supplementary questions, they are called upon before other hon. Members?
§ Mr. SPEAKERI do not know that there is any rule about it. I endeavour to give a preference to those hon. Members who have questions on the Paper. We are now dealing with an answer to seven or eight questions.
§ Mr. CHURCHILLMay I ask the Prime Minister whether, in view of the fact that his statement definitely commits this country to certain contingent obligations, in view of which the investors throughout the country are being guided, and that thus, in a way, we are being committed to—[Interruption]—the right hon. Gentleman will not allow the House an opportunity of Debate upon this question?
§ Mr. THORNEHas there been any consultation with the Opposition about this matter?
§ The PRIME MINISTERCertainly there would be a debate. This Government and any other Government responsible for the government of this country will see to it that any obligations incurred in relation to India's credit will not be allowed to be let down.
§ Mr. CHURCHILL rose——
§ Mr. SPEAKERThe right hon. Gentleman must not abuse the latitude which I have given him of putting supplementary questions.
§ Mr. DOUGLAS HACKINGWith regard to the question of boycott, will the Prime Minister see that no financial support is given to India unless there is a definite improvement with regard to the boycott of Lancashire?
§ The PRIME MINISTERWe cannot allow the credit of India, for the management of which we are very largely responsible, to be mixed up and made conditional to any other subject upon which we are negotiating in an independent way.
§ Mr. SANDHAMMay I ask, arising out of the original reply to Question 50, if the underlying economic principle covered by that question will be kept in mind by the Prime Minister, particularly in view of the fact that this would be turning unemployment pay into useful economic channels?
§ The PRIME MINISTERWhatever sympathy I may have with the view of my hon. Friend, it would be most improper to mix this question up with the problem of the security of India's credit.
Sir F. HALLWhen the right hon. Gentleman made his statement in the House in which he said it will not be possible to introduce the proposed constitutional changes if financial stability is not assured, may I ask whether the Prime Minister made that statement entirely on his own initiative; or whether he had been in communication with India on the subject, and if so, will he be kind enough to lay a White Paper on the subject on the Table in order that we may be made fully aware of the whole facts of the case?
§ The PRIME MINISTERThat is a totally different subject from the one raised in the question, but, as a matter 1263 of fact, there are no papers, so far as I know, upon this subject to lay on the Table.
§ Sir W. BRASSAre we to understand, from the right hon. Gentleman's reply, that no conditions so far as the boycott is concerned are to be taken into account; and will the right hon. Gentleman, in the event of financial assistance being given to India, take into account the financial position of Lancashire?
§ The PRIME MINISTERThe financial position of Lancashire is being taken into account; but the Government is not, and I am perfectly certain that the nation is not, going to allow people who have invested in Indian credit to be worsened by anything that may happen because there is doubt as to whether that country is going to fulfil its responsibilities or not.
§ Mr. SPEAKERI cannot allow any more supplementary questions.