9. Lieut. - Colonel SANDEMAN ALLENasked the Secretary of State for Foreign Affairs if he will notify all advisers of British nationality attached to the League of Nations, owing to the losses of capital sustained by British subjects through the issue in Britain, under the supervision of the League of Nations, of £39,000,000 of loans, that any proposed issue here of further similar loans will be harmful to international good feeling and should be discouraged?
§ Sir J. SIMONHis Majesty's Government are not, of course, responsible for proposals made to the League of Nations by advisers appointed by it, 1885 whether these are of British nationality or not. My hon. and gallant Friend is misinformed in supposing that default has taken place on all the loans to which he refers. His Majesty's Government, as has been several times stated, take the gravest view of those defaults which have in fact taken place.
§ Sir CHARLES CAYZERAre these advisers to be the same people who were the architects of the previous League of Nations loans and in view of the losses sustained by British investors in these loans does the Government contemplate taking their advice?
§ Sir J. SIMONThe hon. Baronet is under some confusion. There is no question of His Majesty's Government taking different advisers. The advisers to whom this question refers are advisers selected by the League of Nations and not by the Government.
§ Mr. DAVID GRENFELLIs it not the case that the House is responsible in the matter as it has on several occasions taken the decision to grant loans for reconstruction in Europe?
§ Sir J. SIMONI should not like without consideration to give a specific answer. I quite understand what the hon. Member is referring to in general terms but it would be better if he put a question down.
§ Sir ARTHUR MICHAEL SAMUELDoes not the right hon. Gentleman see that these loans supervised by the League of Nations are a grave source of irritation which operates to the disadvantage of the League of Nations and that further issues here should be very carefully handled?
§ Sir J. SIMONI entirely agree with my hon. Friend.
8. Lieut.-Colonel SANDEMAN ALLENasked the Secretary of State for Foreign Affairs if he will ascertain whether the Chilean Government is raising additional taxation among its own nationals in order to meet its obligations on defaulted Chilean Government securities?
§ Sir J. SIMONAccording to the latest information in my possession, the Chilean budget does not include any provision for meeting the service of the foreign debt.