§ Sir PHILIP CUNLIFFE-LISTER(by Private Notice) asked the Prime Minister whether he is in a position to make any statement in regard to the financial position in India?
§ The PRIME MINISTER (Mr. Ramsay MacDonald)The financial strain on the resources of the Government of India, already great owing to the world economic depression, has been accentuated by uncertainties which have attended the discussion of constitutional changes and, more particularly, the consideration of the provisions to be embodied in the new Constitution to ensure financial stability. It will not be possible to introduce the proposed constitutional changes if financial stability is not assured, and His Majesty's Government are determined not to allow a state of affairs to arise which might jeopardise the financial stability and good government of India for which the Secretary of State is at present responsible. They have therefore decided that, should the need arise, they will apply to Parliament for the authority necessary to enable them to give financial support under suitable conditions to the Government of India for the purpose of maintaining the credit of the country pending the settlement of the constitutional problem and the formulation of provisions which will ensure the maintenance of India's credit in the future.