§ Mr. Greenwood(by Private Notice) asked the Prime Minister whether he has any statement to make regarding the alleged proposal for a German loan?
§ The Prime MinisterThere is no proposal for a German loan. I assume that the right hon. Gentleman is referring to reports that have been in circulation during the last few days, arising out of a conversation between my right hon. Friend the Secretary to the Department of Overseas Trade and Herr Wohltat, Economic Adviser to Field Marshal Goering, the Minister in charge of the German Four-Year Plan. Herr Wohltat was on a visit to this country as the Ger- 1026 man representative on the Whaling Conference; it is also part of his responsibilities to discuss matters arising out of the refugees question. So far as I am aware, Herr Wohltat's mission did not extend beyond these matters. In the course of other visits in recent years to this country, Herr Wohltat has met a number of officials and others who are concerned with trade and economic questions affecting the two countries, consideration of these matters forming part of Herr Wohltat's normal duties. It was, accordingly, in no sense unusual that my right hon. Friend and Herr Wohltat should meet and should discuss subjects in which they are mutually interested, and for which they are respectively responsible in their official capacities.
My right hon. Friend has reported to me that the conversation turned to the steps that might be taken to produce an improvement in the foreign trade of the principal manufacturing countries. In this connection, my right hon. Friend, pointing out that a solution of the political question was a necessary preliminary (by which, of course, he meant a restoration of international confidence) discussed what might be done to remove existing barriers to the development of international trade, including barter agreements, exchange restrictions, import quotas and so forth. Discussion of economic questions of this character led on to discussion of the financial steps that might have to be taken to overcome the initial difficulties, and my right hon. Friend (who throughout emphasised that he was only expressing a personal view, and having in mind the stipulation that restoration of international confidence is a necessary preliminary) said he thought that assuming that international confidence had been restored, there should be scope for co-operation on this matter on the part of the principal countries concerned.
It will be seen from this account that there is no justification whatever for stating or for assuming that these remarks, arising in the course of an unofficial conversation, constitute a proposal for a loan by this country to Germany.
§ Mr. GreenwoodMay I take it from what the Prime Minister has said that the Cabinet have no knowledge whatever of the possibility of discussions of this kind and did not prompt them in any way. 1027 and, also, that there is no intention on the part of His Majesty's Government now to begin discussions which might look like bribery to Herr Hitler, in order to buy peace?
§ The Prime MinisterYes, I can give an affirmative answer to both those questions. The Cabinet knew nothing about these conversations, nor did any other Minister but the Minister concerned. It is not the intention of His Majesty's Government to initiate any discussions of the kind suggested.
§ Sir P. HarrisWho was responsible for disclosing the text of these conversations?
§ The Prime MinisterThat is a question to which I should very much like to know the answer myself.
§ Mr. ShinwellDoes the Prime Minister regard it as desirable that a member of the Government, although not in the Cabinet, should engage in conversations of this kind, important as they are, at this crucial time—[Hon. Members: "Why not?"]—without some preliminary guidance from the Government themselves; and, further, can he say quite categorically that no highly placed official of the Government has had conversations of this kind with Herr Wohltat?
§ The Prime MinisterI do not see any particular harm in this particular conversation, which was a personal conversation between my right hon. Friend and an official on the German side. The mischief—if mischief there was—was in the disclosure of what took place in the newspapers. With regard to the second part of the question, this is, I suppose, a repetition of the usual attacks on Sir Horace Wilson. Sir Horace Wilson, as Chief Industrial Adviser to the Government, has frequently seen Herr Wohltat when he has been over here on a visit. He saw him again on his recent visit, and did not discuss with him any of the matters to which I have alluded in my description of the conversation with my right hon. Friend.
§ Mr. ShinwellMay I follow that by asking whether—
§ Mr. ShinwellOn a point of Order. May I direct your attention, Sir, to the fact that it was not I who mentioned the name of Sir Horace Wilson, but the right hon. Gentleman, and may I, therefore, put a further question to the right hon. Gentleman in order to elucidate this point?
Mr. SpeakerThe hon. Member put a question to the right hon. Gentleman, who gave a very definite answer.
§ Mr. ShinwellIt was the right hon. Gentleman who made reference to Sir Horace Wilson, and can he say quite categorically that no official of the Board of Trade conducted conversations with Herr Wohltat, and that the Secretary for the Overseas Trade Department was not aware of the opinion of officials of the Board of Trade in connection with this matter?
The Prime MinistersI know nothing about any conversations between any official of the Board of Trade. It is no use cross-examining me without notice about other conversations that may have taken place with Herr Wohltat while he was over here. I have said what I can about Sir Horace Wilson, but I cannot say anything about the Board of Trade.