§ 5. Major-General Sir ALFRED KNOXasked the Secretary of State for India whether he is aware that the Government of India has recently ordered railway equipment from the Royal Hungarian State workshops, which are subsidised by the Hungarian Government, so enabling them to supply equipment at uneconomic prices, and that British bondholders have agreed not to enforce their claims for interest due on loans granted to the Hungarian Government; and whether he will take steps to ensure that the British locomotive builder is not, in this way driven from the Indian market?
§ 7. Lieut.-Colonel Sir WALTER SMILESasked the Secretary of State for India if he is aware that the Indian Government is placing substantial orders for locomotive work with Hungarian State shops, whose operations are subsidised by a Government which is in default to British bondholders; and if he will suggest that all such orders should be placed in future with British firms?
§ Sir S. HOAREThe subject which these questions raise is principally one for the consideration of the Treasury. So far as I am concerned, I am aware that orders for locomotive equipment have recently been placed with the Royal Hungarian State Iron and Steel Works. This is in accordance with the practice which has been frequently explained in this House and which I am not in a position to alter.
§ Sir A. KNOXIs it not possible for the right hon. Gentleman to make representations to the Treasury, as it is an impossible situation that money due to British bondholders should be used to subsidise employment in Hungary?
§ Sir S. HOAREI think the hon. and gallant Gentleman had better put a question to the Treasury.