§ 50. Sir P. GOFFasked the Chancellor of the Exchequer whether he is aware that the default by the German authorities upon obligations to which British investors have subscribed activates a principle preventive of the future placing in Britain of any loans by German and other foreign public authorities; and will he notify the German authorities prior to the reconsideration of the German transfer moratorium that it is desirable 1636 that there should be an agreement with their British creditors?
§ The FINANCIAL SECRETARY to the TREASURY (Mr. Hore-Belisha)My right hon. Friend fully realises the serious effect which might result from action of the kind mentioned in the question, and the German Government is already aware that His Majesty's Government regard it as an essential principle that, if any temporary sacrifice is to be asked of the creditors in present circumstances, it should be discussed with the creditors with a view to reaching an agreed arrangement.
§ Sir ARTHUR MICHAEL SAMUELIs my hon. Friend aware that that is exactly what the German Government have not done, and that they have forced a unilateral default on their British creditors without agreement by those creditors?
§ Mr. HORE-BELISHAMy answer deals with that point.