§ 69. Sir J. Mellorasked the Chancellor of the Exchequer whether the issue in London of £5,000,000 4 per cent. sterling bonds of the Belgian Government, with the permission of the British Treasury, indicates any modification of the British Government's policy with regard to foreign lending; and what portion of the loan will be spent in the United Kingdom?
§ Sir J. SimonIn reply to the first part of the question. I do not think that the time has come when foreign Governments 1338 can be allowed to borrow freely in London, and such proposals will continue to receive my careful attention in the light of the observations of the Foreign Transactions Advisory Committee. Each proposal is, of course, the subject of separate consideration, and in this case I was satisfied that there was no objection in the national interests to consent being given to the Belgian loan. As regards the second part of the question, the loan is a financial operation not involving the purchase of goods here or elsewhere. I understand that some 20 per cent. of the proceeds may be used in this country.
§ Sir J. MellorIs it the view of the right hon. Gentleman that the conditions of this loan satisfy the terms of the instructions laid down by his predecessor on 7th April, 1936, or is the loan being treated as an exceptional case?
§ Sir J. SimonIt is not being treated as an exceptional case. Each case is considered on its merits, and if the hon. Member will look at the instructions he will see that particular conditions are mentioned, and I repeat that I am satisfied that the Belgian loan is, in the circumstances, thoroughly justified.
§ Mr. ThorneWill the right hon. Gentleman keep a keen eye on Japan?