§ 5. Mr. SMITHERSasked the Secretary of State for Foreign Affairs whether, in 334 view of the fact that the city of Riga has been in default in interest amounting to some £865,000 since 1917 on the service of the 4½ per cent. 1914 sterling loan, he will take the opportunity, during the trade agreement negotiations, to call the attention of the Latvian Government to this default and ask them to bring pressure to bear on the city of Riga to meet their obligations?
§ Sir J. SIMONYes, Sir. A suitable opportunity having occurred, the attention of the Latvian Government has been drawn to this matter, and they are being urged to take action to facilitate a settlement of the case.
§ Mr. SMITHERSWill the right hon. Gentleman refuse to enter into any trade negotiations until the obligations are met?
§ Sir J. SIMONThe hon. Member will recall the reply to an earlier question he put, when I pointed out that our negotiations are really with the State of Latvia in connection with trade. This is not a State loan, but none the less we have found an opportunity of using such pressure as we can in the matter.
§ Mr. HANNONDoes not the right hon. Gentleman know that this loan has been the subject of negotiations for several years past—I think for 10 or 11 years—and surely it is time that it was disposed of once and for all?
§ Sir J. SIMONAnything that has gone on for 10 or 11 years cannot always be disposed of at once.