§ 38. Mr. HAMMERSLEYasked the Chancellor of the Exchequer if he will prohibit the granting of loans to Iraq except on the condition that all moneys provided by any such loans should be spent in this country?
§ Mr. HORE-BELISHAAs my bon. Friend is aware, my right hon. Friend has asked intending borrowers to refrain for the present from coming on the market for foreign issues. If the Iraqi Government, which stands in a special relation to His Majesty's Government, should come forward with a request for special treatment, the extent to which their proposals would lead to the placing of orders in this country would be one of the considerations to be taken into account in reaching a decision. I cannot say more in answer to a hypothetical question.
§ Mr. HAMMERSLEYIs my hon. Friend aware that, in spite of this special relationship in which the Government of Iraq stand to this Government, they have recently placed orders with Japan, against all previous expectations?
§ Mr. HORE-BELISHAThat maybe so, but I have answered my hon. Friend's question.
§ Sir A. M. SAMUELWould not this be a good opportunity for setting up, for future foreign loan issues, a board modelled on the Public Works Loan Board such as we, have here for domestic municipal issues, so that we. may test the safety of what is required in the shape of loans to be made abroad in order to secure foreign orders?
§ Mr. SPEAKERThat is a different question.