§ 35. Colonel WEDGWOOD
asked the Prime Minister whether the proposed loan of £2,500,000 to Austria is to be made by this country alone or jointly with other Powers; what security is offered; whether this loan is to be regarded as part of the £8,000,000 assistance arranged for by Sir William Goode under the League of Nations' scheme, or does it stand by itself as a complete effort to secure financial stability in Austria; and shall we be enabled to have Sir William Goode's views on the subject before the loan is approved by this House?
§ Sir R. HORNE
The amount of the proposed loan in question is £2,000,000, and is to be paid out of money already voted by the House of Commons. The exact security to be given, and the question of the grant of additional loans by other Powers are under consideration. It has been suggested to the Austrian Government that certain Gobelin tapestries 295 might be given as temporary security pending the release of the liens held by various Governments upon Austrian assets for reparation and relief loans. The gentleman named in the third and fourth parts of the question has no connection with the League of Nations, and never had any connection with the League or with the plan for financial restoration worked out by the Austrian Government with the co-operation of the League. The loan now in question is to be regarded as a temporary advance to Austria on account of the larger sum which Austria will, it is hoped, be able to raise on her own security as soon as the liens are released.
§ Colonel WEDGWOOD
If Austria is able to raise a loan on her own security, will this loan of ours be absorbed with the new loan, and shall we thereby get the security which all subsequent creditors of Austria will get under the League of Nations?
§ Sir R. HORNE
That, obviously, is a matter of detail that is worthy of very serious consideration. It must be understood that the arrangements which have been made necessarily include placing us, who have given the original loan, in as good a position as anyone who gives a subsequent loan.