§ 12. Mr. Marlowasked the Chancellor of the Exchequer what mechanisms exist for lending money to the European Economic Community.
§ Mr. Peter ReesThe Commission has no general powers to borrow. It has, however, been empowered by the Council to borrow in the markets on behalf of the Community in order to on—lend for certain specific projects.
§ Mr. MarlowWill my right hon. and learned Friend give a simple and clear undertaking to the House today that in no circumstances will Her Majesty's Government consider or agree to a loan to the European Community to pay this year's financial over run, because if he does not give such an undertaking today people will assume that we would be prepared to consider such a loan?
§ Mr. ReesNo such assumption should be made. As, in the present circumstances, it has not been demonstrated that savings could not be made, it is far too early, in the Government's view, to consider such a loan.