§ 50. Colonel Wedgwoodasked the Chancellor of the Exchequer whether, in carrying out the new rules as to the investment of British money in foreign ventures, he will attempt to secure the co-operation of the American Government, so that any action might be taken together and not in competition, and so that for the transfer of interest, dividends, or profits from the foreign territory to Britain or America, the investors might have such joint support as the two Powers, acting jointly, may be able to give?
§ Sir J. SimonI would remind the right hon. and gallant Gentleman that foreign investments, whether by nationals of this country or of the United States of America, are undertaken by private initiative and not by either Government, so that the question of co-operation between Governments in making such investments does not arise. In cases where our own investors need support from His Majesty's Government of the kind indicated in the second part of the question, it is the existing practice of His Majesty's Government to co-operate with other Governments similarly concerned, and there is also co-operation between the Council of Foreign Bondholders and similar bodies abroad including the American Foreign Bondholders Protective Council.
§ Colonel WedgwoodWill the right hon. Gentleman say whether the statement he made the other day as to the Government's authorisation of investments of British money in enterprises in foreign countries is not a new departure where the Government are taking a certain responsibility?
§ Sir J. SimonNo, the position, as the right hon. and gallant Member will recall, 844 was that under the arrangements previously in force the committee presided over by Lord Kennet offered advice to the Government on the transactions defined in their terms of reference, and when those terms of reference were modified, it was thought desirable to state the modification to the House.
§ Colonel WedgwoodBut does not that involve a certain amount of Government responsibility?
§ Sir J. SimonThe Government take no responsibility at all. The question is merely whether or not it is desirable in the general interest that that particular class of investment should take place.