§ 37. Mr. HANNON (for Mr. REMER)asked the Chancellor of the Exchequer if he is aware that His Excellency Dr. T. V. Soong is now engaged in negotiating with a prominent firm of London bankers for a large loan for China, the proceeds of which may be used for the purchase of goods abroad; and if he will make a condition in sanctioning the issue of such a loan that the amount raised should be expended on the purchase of goods in this country?
§ 38. Sir NICHOLAS GRATTAN-DOYLEasked the Chancellor of the Exchequer whether he will notify the Chinese authorities that the public issue in London of a further loan to China will not be authorised by His Majesty's Government unless and until the hardships suffered already by British investors owing to the defaults upon Chinese Government debts and railway loans have been remedied?
§ Mr. HORE-BELISHAI would remind my hon. Friends that no foreign loans are being issued in London at present, and, so far as I am aware, no negotiations of the kind suggested are taking place.
§ Mr. HANNONIn the case of a foreign loan being issued, will the principle suggested in the question be observed?
§ Mr. DAVID MASONIs it not the ease that all foreign loans negotiated in this country are necessarily paid either in goods or in services?
§ Sir A. M. SAMUELBut is my hon. Friend aware that, even though loans to foreigners leave these shores in the form of exports, if the loans, as has been the case recently, are defaulted upon, the exports are merely gifts to the borrowers