HC Deb 04 July 1933 vol 280 cc167-8
38. Lord SCONE

asked the Chancellor of the Exchequer whether he will, for the future protection of the British investors, now give effect to the observations made by him at the Economic Conference and set up suitable machinery, modelled on the Public Works Loan Board, by which attempts by foreign public authorities to borrow on the London open market shall be examined, as in the case of British public authorities, before such foreign borrowers are permitted to invite the public to subscribe their savings?

Mr. HORE - BELISHA

My Noble Friend is under a misapprehension in thinking that proposals to borrow on the London market by British public authorities are examined by the Public Works Loan Board. As regards foreign loans, I cannot at present add anything to what my right hon. Friend said at the World Monetary and Economic Conference, namely that it is a, matter for consideration whether the issue of foreign loans should not be subject to a greater measure of control by the authorities of either the borrowing or the lending coun- try. As my Noble Friend is aware foreign loans are not being issued on this market at present.

Lord SCONE

May we have the assurance of my hon. Friend that the Chancellor of the Exchequer is considering this matter; and may we expect an announcement on the subject at an early date?

Mr. HORE - BELISHA

I thought that that was the question upon the paper which I answered with some particularity.

Sir A. M. SAMUEL

In view of the many defaults on foreign loans, is my hon. Friend aware that this proposal would be of great advantage to us; and is he aware that much of our export trade in the last 15 years financed by our loans to foreigners has not been trade at all but merely gifts exported to foreigners and a dead loss to us?

Mr. HOBE-RELISHA

I answered that question when I said that foreign loans were not being issued on this market at present.

Sir A. M. SAMUEL

Is there not, however, very good ground for asking that an examining committee should be set up before more loans are floated upon this market for the benefit of foreigners?

Mr. HORE-BELISHA

Perhaps my hon. Friend would put a question upon that point at a later stage when it becomes relevant.

Mr. MACQUISTEN

Will it apply to Russia?