§ 50. Sir N. GRATTAN-DOYLEasked the Chancellor of the Exchequer whether those responsible are taking steps to ensure that such reparation bonds as are to be issued under the Young plan in countries other than Britain shall not be easily negotiable in Britain and used at a critical juncture as instruments for drawing our gold stock into non-British centres?
§ 51. Sir BERTRAM FALLEasked the Chancellor of the Exchequer the reason why it has been decided that a portion of the reparation loan under the Young plan is to be issued in London, even granting that the proceeds of that portion will be paid into the British Exchequer; and will he state why the whole issue is not to be offered for subscription in countries other than Britain and the share of the total proceeds which is due to Britain thereafter paid over to the British Treasury?
§ 57. Mr. ANNESLEY SOMERVILLEasked the Chancellor of the Exchequer 991 what steps his advisers have taken to arrange that the principal and/or interest on those bonds to be issued in countries other than Britain as part of the German reparations loan under the Young plan shall not be encashable in Britain, or in sterling, and that the terms of such bonds shall render them not easy of resale in Britain and inconvenient as instruments in the hands of foreigners by which to withdraw gold from London?
§ Mr. P. SNOWDENThe detailed conditions of the proposed issue of reparation bonds are still under discussion between the representatives of the Governments and of the banks concerned, and I cannot yet say definitely what the precise form of the bonds will be. But I have made clear to the British representatives that I cannot agree to any modification of the provisions included in the experts' plan with a view to protecting the interests of the London market, and in particular that I would object to any arrangement under which either the principal and/or interest on the bonds of the foreign issues was payable at the option of the holder in sterling at par of exchange. Subject to this, the details of the bonds will have to be settled by agreement consistently with the plan. As regards the question put to me by the hon. and gallant Baronet the Member for Portsmouth, North (Sir B. Falle), it would not have been possible to ensure the success of the loan if no issue had taken place in London, and I do not think it would have been reasonable or consistent with the position of London as a financial centre to refuse an issue in London, provided that it is subject to the condition that the proceeds will be paid to the British Exchequer.
§ Sir N. GRATTAN-DOYLEWhile thanking the right hon. Gentleman for his answer, may I ask him whether he will bear in mind the recent tendency of foreign countries to absorb gold from this country, and the possibility that at a critical time a very dangerous situation might arise?
§ Mr. SNOWDENThat matter has certainly been in our minds in considering what we should do.
§ Sir L. WORTHINGTON-EVANSIs it true that the amount to be issued in London has been fixed at £10,000,000?
§ Mr. SNOWDENI cannot say.
§ 56. Sir BASIL PETOasked the Chancellor of the Exchequer whether any proposal has been made to him to use the cash subscribed for the British portion of the German reparations loan under the Young plan for the purpose of development and reconstruction in connection with the problem of unemployment rather than for the purpose of repaying national debt?
§ Mr. SNOWDENThe answer is in the negative. The money subscribed will be applied to the redemption of debt.
§ Sir B. PETOIs not the policy indicated in the question supported by a large number of hon. Members behind the right hon. Gentleman?
§ Mr. SNOWDENI do not see the relevance of that. The money we require for the purpose of development and reconstruction should be raised in other ways.