HC Deb 14 May 1912 vol 38 cc963-4
Mr. NORTON-GRIFFITHS

asked the President of the Board of Trade whether he is aware that when loans are raised in France for foreign enterprises involving the purchase of manufactures the law of that country provides that such manufactures shall be purchased in France; if he can state in what other countries such conditions are in force; and if he will consider the advisability of introducing legislation to protect British interests, where necessary, in a like manner?

Mr. ROBERTSON

In accordance with the promise which my right hon. Friend gave the hon. Member last year, steps were taken to obtain information on this matter from His Majesty's Diplomatic Representatives abroad. The Board are informed that under French law the admission of foreign loans to quotation on the Bourse is only granted on the approval of the Ministry, who in practice habitually stipulate that a portion at least of any loan raised for foreign enterprises shall be expended on goods of French origin. The permission of the Ministry is also required before a foreign loan can be admitted to quotation in Austria, Hungary, Italy, or Spain, whilst in Germany the necessary permission is accorded by the admission bureaux of the various Bourses, which are under the control of the Governments of the States. In Russia foreign securities and shares are not as a rule admitted to quotation at all. On the other hand, there appear to be in general no similar restrictions in Belgium, the Netherlands, Denmark, Norway, Sweden, or the United States of America. As at present advised, the Board do not propose to introduce legislation which would give power to the Government of the day to prevent the quotation of foreign loans on the Stock Exchange, or which would lay down conditions limiting the right to deal in such securities.

Mr. R. S. GWYNNE

Am I to understand the Government will not take any steps to check this?

Mr. ROBERTSON

The Government do not propose to take any steps to limit the quotation of foreign loan stocks upon the Stock Exchange, which is the preliminary in France.