§ 7. Sir RENNELL RODDasked the Secretary of State for Foreign Affairs for what purposes, under what condi- 1721 tions, and to what amount His Majesty's Government propose to participate in an International Agricultural Credit Bank?
Mr. A. HENDERSONThe scheme for an International Agricultural Mortgage Credits Company was decided upon as the result of discussions in the Commission on European Union. Its purpose is to make loans on mortgage, through the agency of central banks, to peasant cultivators in Central and Eastern Europe, and, in particular, to assist them to change over from wheat growing to other forms of agricultural production. It is hoped to raise in various financial centres a capital of £10,000,000, of which £1,000,000 would be issued at the outset. In addition, a special reserve fund of £1,000,000 is to be set up, to which all Governments who are parties to the Convention will contribute. The share of His Majesty's Government in the United Kingdom would be approximately £120,000. It is proposed that this reserve should be deposited with the Bank of International Settlements, should bear interest, and, in due course, be repaid out of the profits of the company.
§ Sir R. RODDWhat are the limits of the portions of Europe to which this is to be given? We are told Central and Eastern. Does that include the Central German States and Austria?
§ Mr. ARTHUR MICHAEL SAMUELWill the right hon. Gentleman tell us how this is going to benefit Great Britain?
Mr. HENDERSONIt is not very easy —[HON. MEMBERS: "Hear, hear!"] If hon. Members will wait for my reply, they will not cheer so loudly. It is not easy, in reply to a supplementary question, to answer the hon. Gentleman, but the countries that we are trying to assist in this way are customers of ours to the tune of something like £15,000,000 per annum.
§ Mr. MARJORIBANKSAnd debtors of this country!
§ Mr. SPEAKERWe cannot debate this question now.