HC Deb 25 July 1939 vol 350 cc1247-8
55. Mr. Dalton

asked the Chancellor of the Exchequer what outstanding points are still preventing the conclusion of the financial and commercial agreement between His Majesty's Government and the Government of Poland?

Sir J. Simon

Discussions with the Polish Delegation have covered two separate matters. The first is in connection with export credits. His Majesty's Government have offered to guarantee export credits up to the amount of £8,000,000 in order to facilitate the purchase in this country by the Polish Government of material necessary for their defence. The detailed arrangements which will have to be made are now being adjusted between the Polish Financial Delegation and the Government Departments concerned. Discussions have also been proceeding on the possibility of a cash loan to Poland by His Majesty's Government and the French Government acting jointly. I regret that it has not been found possible to reach agreement as to the conditions on which such a loan might be made available in time for the necessary legislation to be passed before the House rises.

Mr. Dalton

Am I to understand that these credits are restricted to the purchase of supplies from this country; and, in that event, if the Polish Government need some military equipment which this country cannot now supply are they barred from obtaining it from America or elsewhere?

Sir J. Simon

The first matter to which I referred would be export credits to assist purchases in this country. As regards the further question of the hon. Member, the French Government and ourselves are entirely at one in being willing to assist Poland, if terms can be arranged, in making the necessary purchases of munitions from other countries.

Colonel Nathan

Have any difficulties arisen through His Majesty's Government refusing to allow any part of this loan to be transformed into either gold or foreign currencies?

Sir J. Simon

I should prefer not to give a detailed description of the difficulties. They are technical, and I hope the hon. and gallant Gentleman will allow me to say that I do not think it would be in the public interest to do so. There are, as he knows, very complicated questions connected with a matter of this sort.

Mr. Dalton

Will the right hon. Gentleman make a vigorous effort to settle these negotiations, and not let them drag on and on?