HC Deb 19 July 1934 vol 292 cc1260-2

asked the Chancellor of the Exchequer whether he will consider the possibility of relaxing the present restrictions on foreign lending?


I am glad of the opportunity to make a short statement. In the first place, I should like to convey my thanks to the authorities concerned, more particularly those of the London Stock Exchange for the manner in which they have invariably striven to give effect to my wishes. I should like to point out also, if I may, that the actual amount or foreign lending at the present time would in no circumstances be great and that it is easy to form exaggerated views as to the effect of the embargo. As regards the future, I am satisfied that it would not be in the public interest that the existing restrictions should be removed at the present time. But under present conditions I should be ready to consider particular cases especially those falling under the following heads:

  1. (a) Sterling issues by a country within the sterling bloc where the loan is required to increase the sterling assets of that country and so to minimise fluctuations in the exchanges.
  2. 1261
  3. (b) Sterling issues on behalf of any borrower where the proceeds are calculated mainly to produce direct benefit to British industry.


Will the right hon. Gentleman consider the advisability of putting into his next Budget a rather heavy tax upon foreign loans.


I am afraid I cannot anticipate the next Budget.

The following are particulars of (a) grants (including subsidies) for local and other services as shown in the Estimates presented to Parliament since October, 1931; (b) guarantees given or provided for under legislation passed since October, 1931; and (c) issues from the Consolidated Fund under legislation passed since October, 1931.
(A) Grants (including subsidies) for local and other services Since October,1931.
Supplementary votes, November, 1931, to March, 1932. 1932–33. 1933–34. 1934–35 (Original estimates and supplementary estimates presented to date).*
£ £ £ £
Exchequer Contributions to local revenues 45,146 45,311 45,354
Education (excluding teachers' pensions) 49,110 47,788 49,319
Education (including Land Settlement grants and loans, Development Fund, Beet Sugar Subsidy and Milk). 49,110 47,788 49,319
Fisheries 54
Health services 162 149 152
Housing 15,263 15,691 16,016
Rural water supplies 210
Police 11,182 11,309 11,721
Road Fund 2,750
Unemployment Grants and Loans (including Development Grants). 4,150 5,400 5,150
Empire Marketing Fund 320 250
Colonial Development Fund 700 400 500
Other Foreign and Imperial Grants 35 1,176 3,206 2,955
Grants for Scientific and Industrial Research. 61 93 132
Light Horse Breeding 12 5
Light Horse Breeding 12 5
Mechanical Transport 8 3 1
Civil Aviation 385 402 432
Miscellaneous 545 560 682
35 135,167 135,697 139,882
* The sums shown for 1934–35 have not yet been voted in Committee of Supply.
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