§ 41. Sir FRANK SANDERSONasked the Chancellor of the Exchequer how much, if any, of the proceeds of the French Four per cent. and Five per cent. Loans (National Defence) London issue, were transferred to France; and what amount of the total was retained by and credited to the account of the British Government by way of payment for goods and services rendered to France?
Mr. GUINNESSThe loans referred to (about £54 millions) were issued in order to meet the sterling requirements of the French Government and I should, therefore, assume that the proceeds were spent here. The answer to the second part of the question is about £3½ millions in repayment of advances previously made.
§ 42. Sir F. SANDERSONasked the Chancellor of the Exchequer whether he will consider approaching the French Government in regard to the Four per cent. and Five per cent. (National Defence) Loans, London issue, with a view to the interest thereon being paid in sterling, to the original subscribers, at the same rate of exchange as that at which the subscriptions to the loans were made, seeing that it was stated at the time of issue that the Bank of England, with the approval of His Majesty's Government, was authorised by the French Government to receive applications and that subscribers were advised that subscriptions to a loan under such 1163 auspices were equivalent to subscriptions to the British War Loan, and that they were asked to subscribe in order to help our Allies?
Mr. GUINNESSI do not think that I can directly intervene in this matter, but the effect of the present position on French credit is, naturally, well known to the French Government.