HC Deb 30 May 1922 vol 154 cc1900-1
10. Colonel WEDGWOOD

asked the Secretary of State for the Colonies whether the Colonial Office and the Treasury consider themselves bound by a statement of the Right Hon. Joseph Chamberlain to the effect that, guarantee or no, this country could not allow any Crown Colony to default in interest on their loans; and, if so, will they see that a definite guarantee is given in future so as to raise the money more cheaply?

Mr. CHURCHILL

I have not been able to trace the statement to which the hon. and gallant Member refers. I see no reason to anticipate that any Crown Colony will default in the interest on any of its loans, and I doubt whether it is either practicable or desirable to discuss what steps should or could be taken in so remote and improbable a contingency. In answer to the last part of the question, I am not prepared to urge my right hon. Friend the Chancellor of the Exchequer to ask Parliament for a general authority to give a British Government guarantee for Crown Colony loans.

Colonel WEDGWOOD

As this question is still in doubt, when the next loan takes place would it not be better that we should have a definite liability under which we should get the money more cheaply rather than have a very indefinite liability, which may be ultimately put upon us as a debt of honour?

Mr. CHURCHILL

This practice is not a new one. When these loans are issued, the prospectus clearly states upon its face that the British Government are not responsible either for the principle or interest and I cannot see what further steps or measures are called for. We have been very successful in raising these loans for the Colonies under the existing system with full notice to the investing public. The money raised by these loans has been largely spent. upon labour in this country and relieving unemployment. I understand that the hon. and gallant Gentleman wishes by the series of questions he is asking really to endanger the raising of these loans and so prevent them from employing British labour.

Colonel WEDGWOOD

No. I want them to get money as cheaply as possible.