HC Deb 29 June 1937 vol 325 cc1788-9
46. Mr. Liddall

asked the Chancellor of the Exchequer whether in view of the embargo upon foreign lending in London and as many would-be foreign borrowers are uncreditworthy, His Majesty's Government will, in order to distribute unwanted gold and to stimulate international trade, grant, jointly with the United States Government, gold loans at low rates of interest to uncreditworthy foreign borrowers in return for trade advantages, and, at the same time, provide that losses arising from defaults by the borrowers may fall upon the taxpayers of the two nations which will have reaped the trade advantages and not, as in the past, upon private investors?

The Chancellor of the Exchequer (Sir John Simon)

The answer is in the negative.

Mr. Liddell

Will the right hon. Gentleman give the House his objections to attempting to carry out the suggestion?

Sir J. Simon

My hon. Friend, I know, will recollect the answers that have previously been given on this subject, and I think he will agree that the making of loans to uncreditworthy borrowers is not a process from which good will result.

Mr. Jagger

Is the right hon. Gentleman aware that I am a most uncreditworthy borrower, and therefore there is no need to go abroad to look for one?