§ 7. Sir JOHN JARDINEasked under what arrangements occasional balances at the India Office are loaned or deposited with bankers and financial institutions in the City of London and on what security; whether tenders are sought so as to encourage free competition; and by what means the rate of interest is settled?
§ Mr. HAROLD BAKERA list is kept, approved by the Secretary of State in Council, of firms of high standing to whom loans may be made from the balances mentioned by the hon. Member. Applications for admission to the list are carefully considered. The loans are usually made for periods from three to five weeks on the following security; Treasury Bills, Exchequer Bonds, Stocks of the British and Indian Governments issued under authority of Parliament or by the London County Council or the Metropolitan Water Board. In addition, deposits are occasionally made with leading London banks without specific security. The loans and deposits are made by the Secretary of State's broker, subject to the general supervision of the Secretary of State in Council. The rate of interest depends on the prevailing market rate for similar loans. Tenders are not sought.