§ 4. Mr. CLOUGH
asked the Secretary of State for India if he can make any statement on the extent to which native traders are refusing to meet British liabilities at any rate of exchange except 10 rupees to the £; and whether the Government is taking any action or can take any action to relieve the existing tension arising therefrom in commercial circles?
§ Mr. MONTAGU
I understand that most of the important Indian piece goods associations have passed resolutions against the payment of drafts under a two-shilling rate of exchange. The Government of India have informed me that they do not consider that they can usefully intervene in the matter. At a meeting of the Associated Chambers of Commerce of India and Ceylon held last January the finance member of the Government of India strongly criticised the policy of refusal to meet contractual obligations, and I need hardly say that I entirely share his view of the position.