HC Deb 28 November 1916 vol 88 cc152-3
48. Major HUNT

asked the Chancellor of the Exchequer if he will say why, in view of the fact that Sir Ernest Cassel was born in Germany of German parent age, and has received the Order of the Crown of Prussia and the Order of the Red Eagle of Prussia, and has a controlling interest in the National Bank of Turkey, of which Sir Henry Babington Smith, one of the Commissioners, sent out to America to negotiate the Loan, is the president, he was allowed to accompany the Commission with the approval of His Majesty's Government; and why he was allowed to subscribe £1,000,000 to the loan in spite of the fact that an official announcement deprecating investments in this Loan by British subjects was issued) by the Treasury?

Mr. McKENNA

As regards the first part of the question, I would refer the hon. Member to the reply I gave to him on the 8th November; and as regards the second, to the replies I gave to the late Member for the Mansfield Division on the 16th November and 1st December, 1915. The hon. Member will see that Sir Arthur Markham took the opportunity on the occasion of his second question of stating that he had unwittingly done Sir Ernest Cassel an injustice.

Major HUNT

Is it not the fact that there was an official announcement that British subjects were not to subscribe to this Loan?

Mr. McKENNA

That they were not to subscribe to this Loan with funds in this country. I do not remember that they were discouraged from subscribing with funds which they held in America.

Major HUNT

Was not this depletion in Sir Ernest Cassel's holdings made good by advances from his British holdings?

Mr. McKENNA

No; I understand it was not. It was because Sir Arthur Markham was satisfied on the point that he stated that he had unwittingly done Sir Ernest Cassel injustice on the point.

49. Major HUNT

asked the Chancellor of the Exchequer whether the suggestion that Sir Ernest Cassel should accompany the Commission came from himself or from any member of the Government?

Mr. McKENNA

I am unable to say at this distance of time from whom the suggestion came.