HC Deb 06 July 1932 vol 268 cc414-5
1 and 2. ARTHUR MICHAEL SAMUEL

asked the Secretary of State for Foreign Affairs (1) what action he proposes to take in respect to the default of the Hungarian Government on the League of Nations Hungarian 1924 Loan, in view of the fact that the Hungarian Government has broken the general bond and the Geneva protocol;

(2) the purposes for which the Hungarian 1924 League of Nations Loan was raised; and, in view of the fact that some of the subscribers to the loan were British subjects, will he request the League of Nations to provide him with details of the purposes to which the proceeds were eventually applied?

The UNDER-SECRETARY of STATE for FOREIGN AFFAIRS (Mr. Eden)

The Hungarian 1924 League of Nations loan was raised, as part of a general scheme of financial reconstruction drawn up by the Financial Committee of the League and approved by the Council, for the purpose of covering the budgetary deficit during the period of reform, i.e. until June, 1926. For full details of this scheme I would refer my hon. Friend to the General Survey and Principal Documents relating to the Financial Reconstruction of Hungary published by the League of Nations in December, 1026, which contains the information he requires regarding the application of the proceeds of the loan (Publications of the League of Nations: II Economic and financial: 1926, II, 54). The question of the action to be taken in respect of the breach by the Hungarian Government of the general bond and the Geneva Protocol is under the active consideration of His Majesty's Government.

Sir A. M. SAMUEL

Has my hon. Friend assured himself that the statement made in 1926, six years ago, as to the purpose to which the loan would be applied has actually been carried out, and will he inform the Hungarian Government that this breaking of their plighted word will render it impossible for them to raise money again in this country?

Mr. EDEN

A full statement of the Hungarian position was made on the 2nd July. We are now considering the position of His Majesty's Government.

Mr. KIRKWOOD

If a request is to be made to the Hungarian Government that they should keep their word, I want to know what this Government are going to do to keep their pledge to the electors at the last election.