§ 69. Mr. GRANTasked the Chancellor of the Exchequer if it is the policy of the Government to use public funds in the permanent reconstruction of Austria under the auspices of international cooperation, or is the policy to encourage private enterprise under the same auspices?
§ Sir R. HORNEHis Majesty's Government are most anxious that at the earliest possible moment Austria shall herself make arrangements with private lenders for securing such foreign credits as she requires for effecting her own financial and economic rehabilitation. The reasons for which a British Government advance has been granted in the meantime are explained in the answer which I gave to a question on the subject by the hon. Member for Lincoln on the 16th instant.
§ 70. Mr. GRANTasked the Chancellor of the Exchequer under whose advice Mr. Young, whom it is announced is to be in substantial control of the £2,000,000 loan to Austria, will act?
§ Sir R. HORNEBy agreement with the Austrian Government the expenditure from the loan made by His Majesty's Government to Austria is to be controlled by Mr. Young on behalf of the British Treasury. Mr. Young will act in accordance with the general instructions of the Treasury.
Sir J. D. REESIs this money to be spent in paying the salaries of the Austrian public service, or is it subject to any restrictions whatsoever?
§ Sir R. HORNEIt is subject to no specific restriction, but it will be controlled by a representative of the Treasury. In the main, it is for the relief of Austria and in order to bring back conditions in Austria under which they can carry on trade.
Sir J. D. REESSince this is so small a sum—merely a drop in the ocean—is it to be regarded as the beginning of a policy of loans to Austria, or as an isolated and final loan?
§ Sir R. HORNEOn the contrary, the House voted £10,000,000 for the relief of Austria, and this sum is the last of that money.
§ Colonel WEDGWOODHas the right hon. Gentleman received any news yet as to the release of the liens on the only possible security in Austria by the Government of the United States?
§ Sir R. HORNEAs my hon. and gallant Friend knows, that depends on the action of the Government of the United States.
§ Colonel WEDGWOODHas the right hon. Gentleman any news as to whether the Government of the United States is taking action in that direction?
§ Sir R. HORNEA Bill dealing with this matter is in progress, but when it will be finally made operative, I cannot tell.
§ Mr. GRANTIn giving these instructions, is the Treasury in touch with the business and banking interests of this country who have a large interest in the matter?
§ Sir R. HORNEYes, undoubtedly. The matter is being managed through a representative banking concern.
§ Mr. E. HARMSWORTHAre the salaries of Mr. Young and his staff paid out of the £2,000,000 loan to Austria, or paid by the British Exchequer?
§ Mr. SPEAKERThat question should be put down.