§ MR. R.N. FOWLERasked the Under Secretary of State for India, Whether the Indian Government will raise the proposed loan of two and and a-half millions for public works in England instead of in India, and thus effect a large saving in exchange?
§ MR. J. K. CROSSSir, the Indian Government have announced that the proposed loan of 2½ crores of rupees for public works will be issued in India. This decision is in accordance with the deliberate policy of successive Secretaries of State, supported by the Select Committee on Public Works in 1878–9, which laid down the principle that it was not desirable to contract gold debts dischargeable from silver assets. I should be glad if the hon. Member would explain in detail to me at the India Office how a large saving in exchange could 196 be effected on the operation of issuing a sterling loan in England rather than a rupee loan of equivalent amount in India.
§ MR. DAWSONWhat is the nature of the public works?
§ MR. J. K. CROSSRailways which will produce such an interest on the return as will more than pay the interest which is charged on the loan.