HC Deb 11 July 1932 vol 268 cc874-5
18. Sir NICHOLAS GRATTAN-DOYLE

asked the Secretary of State for Foreign Affairs whether he will notify the Secretary-General of the League of Nations that loans issued under the supervision of the League have resulted in such losses to British investors that His Majesty's Government will not permit further similar loans to be raised or negotiated in Great Britain?

The SECRETARY of STATE for FOREIGN AFFAIRS (Sir John Simon)

His Majesty's Government must consider on their merits each application which is addressed to the League of Nations by a foreign Government for assistance or advice. In general His Majesty's Government favour the use of the League of Nations as an international instrument of reconstruction. In any case an application on the part of a foreign Government to raise a loan in Great Britain must be considered on its merits by the London market and it is not the practice of His Majesty's Government to intervene in such matters.

Sir N. GRATTAN-DOYLE

In view of the very unsatisfactory results of previous loans, will His Majesty's Government consider the suggestion in the question?

Mr. MANDER

Is it not a fact that most of these loans were approved at the time when the right hon. Gentleman the Member for West Birmingham (Sir A. Chamberlain) was Foreign Secretary?

Sir ARTHUR MICHAEL SAMUEL

Is it not now clear that using the money of the British taxpayer in order to put bankrupt nations on their feet is useless, because it does not succeed in keeping them on their feet? Is it not only a waste of money?

Sir J. SIMON

That is a general question which, I think, should only be raised in Debate.

19. Sir N. GRATTAN-DOYLE

asked the Secretary of State for Foreign Affairs whether any British representatives on the League of Nations advised or acquiesced in the 1924 League of Nations loan to Hungary, which is now about to default?

Sir J. SIMON

Yes, Sir. The scheme of Hungarian financial reconstruction, of which the 1924 League of Nations loan formed a part, was elaborated by the Financial Committee of the League and generally approved by the Council, who on 20th December, 1923, gave a committee consisting of the British Empire, France, Italy, the Little Entente countries and Hungary full powers to continue the necessary negotiations to carry the scheme into effect. This committee, on which the British representative was Lord Cecil, reported to the Council in March, 1924, that all outstanding questions had been settled. On 14th March the Council, on which the British representative was Lord Parmoor, approved the decisions of its committee.

Mr. HANNON

Was it not most important at that time, that approval should be given to this loan, in order to save Hungary from a difficult and embarrassing situation?