48. Lieut.-Colonel SANDEMAN ALLENasked the Chancellor of the Exchequer whether, in order to defend British creditors against further losses and in view of the new policy of the German Reichsbank, steps have now been taken by His Majesty's Government to perfect a scheme of Anglo-German exchange clearing operative as an alternative to any default proposals during the next few months by the German authorities not acceptable, to the representatives of British creditors?
Mr. CHAMBERLAINThe Government will, of course, watch this matter very closely and they will always be ready to take any action which may 1212 appear to them necessary to safeguard the national interest. In their opinion, however, it is undesirable to make any statement of policy in the matter while negotiations are pending.