§ SIR GEORGE CAMPBELL (Kirkcaldy, &c.)asked the Under Secretary of State for India, Whether, since he had stated it to be known to the Secretary of State that, on the first occasion of a 1353 Native Prince coming direct into the London Money Market to obtain money for the Nizams State Railway, at least £138,000 was paid for promotion money, the Secretary of State proposes to take; any steps to put a stop to such, practices, either by providing that the money borrowed for public works and other purposes in Native States shall be borrowed through the Government of India, as was formerly the case, or by warning lenders that they must expect no assistance from the Government of India to realize debts which they have made at their own risk?
§ THE UNDER SECRETARY OF STATE (Sir JOHN GORST) (Chatham)In the case of the Nizam's State Railway the negotiations were conducted between the Nizam's Government and the Company; and the then Secretary of State distinctly disclaimed all responsibility in the matter. In the event of any similar case again occurring, the Secretary of State must reserve his discretion to act as circumstances may require, and cannot lay down any general rules such as those suggested in the Question.
§ In reply to a subsequent Question by Sir GEORGE CAMPBELL,
SIR JOHN GORSTsaid, that the Secretary of State reserved absolute discretion on his part to deal with any case that might arise according to the circumstances of the case. He was not disposed to enter into a pledge to the hon. Member or to the House that he would fetter himself by the imposition of a general rule.
§ SIR GEORGE CAMPBELLDoes the Secretary of State propose to take any action or not?
§ SIR JOHN GORSTsaid, that the Secretary of State did not propose to take any action with reference to the Company which purchased the Nizam's State Railway, and which was formed in 1883 under the auspices of the last Government but two.