HC Deb 10 June 1937 vol 324 cc1955-6
53. Mr. Boothby

asked the Chancellor of the Exchequer whether it is the policy of His Majesty's Government to stimulate a revival of international trade with a view to maintaining industrial activity in this country when the rearmament programme is completed; and, if so, whether he will consider the possibility of a gradual relaxation of the present absolute prohibition of foreign issues?

Sir J. Simon

The reply to the first part of the question is in the affirmative. As regards the second part of the question, it would be a misapprehension to suppose that there is an absolute prohibition on foreign issues. As my hon. Friend will see from the terms of reference of the Foreign Transactions Advisory Committee, which were published in the OFFICIAL REPORT Of 7th April, 1936, special consideration is given to sterling issues on behalf of any borrower where the proceeds are calculated mainly to produce direct benefit to British industry.

Mr. Boothby

In view of the fact that His Majesty's Government do not at present feel that we are financially strong enough to resume international lending on a large scale, are not the suggestions which have been made recently that we are suffering from a surplus of gold rather ridiculous?

Mr. Craven-Ellis

Is it not the case that, if foreign investments are extended much further, it may have a detrimental effect on finance for British industry?

54. Mr. Boothby

asked the Chancellor of the Exchequer whether, with a view to increasing the volume of international trade, he will review the present activities of the Foreign Transactions Advisory Committee and the terms of reference under which it works, and, if necessary, change them?

Sir J. Simon

The usefulness of this Committee was the subject of an answer by my right hon. Friend the present Prime Minister on 25th February last, and I would refer my hon. Friend to this answer.

Mr. Boothby

Will the right hon. Gentleman be good enough to answer the latter part of my question, as to whether he will consider the Committee's terms of reference in the light of the conditions from time to time, and keep them under review?

Sir J. Simon

These matters are always being kept under review. As the hon. Member knows, many factors have to be considered, and I can assure him that they are constantly under consideration. I think that, if he will refresh his memory by looking at the terms of reference, he will find that the terms of reference themselves provide for a very proper latitude.