HC Deb 01 June 1932 vol 266 cc1141-2
2. Sir CYRIL COBB

asked the Secretary of State for Foreign Affairs whether he will propose to the League of Nations that loans issued under the League's supervision should in future be provided by member Governments of the League of Nations and not raised here by public subscription, so that the cost of the financial reconstruction and refugee resettlement of Europe may not fall on the private British investor?

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

I am not prepared to adopt my hon. Friend's proposal. There is no justification for the cost of financial reconstruction and refugee settlement falling either on the taxpayers of the States which are members of the League of Nations or on the private investors who have chosen to subscribe to, or purchase, the loans in question. On the contrary, it is essential that the obligations undertaken by the borrowing countries should be punctually discharged, or, where a temporary default has occurred, that full payments should be resumed and any arrears of payment made good at the earliest possible date.

Sir ARTHUR MICHAEL SAMUEL

Would it not prevent misapprehension if my right hon. Friend warned the authorities of the League of Nations that any attempt again to raise loans under the supervision of the League here from private investors would probably fail?

Sir J. SIMON

I think the circumstances are very present to the minds of all concerned.

1. Mr. BROCKLEBANK (for

asked the Secretary of State for Foreign Affairs whether he will propose to the League of Nations that the contractual redemption schemes of loans issued under the supervision of the League shall be operated, in view of the advantage to the borrowers arising from the low prices at which the loans can be repurchased for redemption?

Sir J. SIMON

No, Sir. As for my hon. Friend's suggestion, I can only say that the concern of His Majesty's Government is to secure that the contractual obligations in respect of loans issued under the League of Nations, both in respect of interest and in respect of sinking fund, should be integrally carried out.