§ 3. Mr. DAVID GRENFELLasked the Secretary of State for India whether the Government of India have under consideration or will consider the advisability of converting sterling liabilities into rupee loans and the commutation of Indian service pensions with a view to the reduction of foreign obligations?
§ Sir S. HOAREIt has always been the policy of the Government of India to restrict its external obligations as far as possible. I should, however, point out that full commutation of pensions payable in sterling could only be effected by increased sterling borrowing, involving the substitution of additional sterling debt charges for sterling pension payments.