§ 33. Mr. Manderasked the Chancellor of the Exchequer whether he proposes to allow the Bank of England to continue to collaborate with the Bank for International Settlements, in view of the passing of the Trading with the Enemy Act?
§ Sir J. SimonThe Bank of England are acting, and have from the outbreak of the war been acting, in close collaboration with the Treasury to ensure that no infringement of the Trading with the Enemy provisions shall arise.
§ Mr. ManderCan the right hon. Gentleman say whether the Bank of England are still collaborating with the Bank for International Settlements, as I put it in the question?
§ Sir J. SimonI think the point of the hon. Gentleman's question, and a very natural one, was that he wanted to be assured that the Trading with the Enemy Act was being strictly observed.
§ Mr. ManderWill the right hon. Gentleman be good enough to answer the question whether the Bank of England are continuing to collaborate with the Bank for International Settlements?
§ Sir J. SimonThere can be no possible trading under the terms of Trading with the Enemy Act merely in the fact that the Bank of England and a Swiss bank are in communication. What is necessary is to be sure that none of these communications or transactions in the least involves any trading with the enemy.
§ Mr. MacquistenIs it not time that the Bank for International Settlements was wound up?
§ Mr. Herbert MorrisonCan the right hon. Gentleman give an assurance that there cannot happen in present circumstances the kind of trading with the enemy whereby millions of pounds were handed from the Czech State to the Nazi Government?
§ Sir J. SimonThe point of the question —without any question of what has happened in the past—was whether any question of trading with the enemy could arise.
§ Sir Archibald SinclairDoes it mean that the Chairman of the Bank of England and other representatives of the Bank of England will be meeting German Ministers at Basle on the business of the Bank for International Settlements?
§ Sir J. SimonNo, Sir; I am sure they will not.
§ Sir A. SinclairWhy not? They are members of the Board.
§ Mr. BellengerAre we to understand that members of the German Government are still members of this International Bank, and, therefore, will it be possible for our representatives to meet these German representatives at Basle if they should go there?
§ Sir J. SimonI am quite confident that no such meeting is taking place.
§ 34. Mr. Manderasked the Chancellor of the Exchequer whether he will consider the advisability of reclaiming from the Bank for International Settlements the Treasury's Trust Account Deposit which has been re-invested in Germany, in view of the fact that, by virtue of The Hague Agreement of 1930 and the Brussels Protocol of 1936, Germany has undertaken not to place any restrictions upon the bank assets even in time of war?
§ Sir J. SimonI stated the position of this matter very fully in answer to questions on 1st August last, and after full consideration I cannot add anything to that reply.
§ Mr. ManderIn view of the fact that the German Government has given an undertaking to pay over this money, and that to refuse to do so would involve a breach of two international agreements freely entered into, will not the Chancellor of the Exchequer—and is not it his 1053 duty to do so—make an attempt to obtain this money for the British Government?
§ Sir J. SimonAs I assured the hon. Gentleman before, this matter has been most carefully looked into. The action which has been taken undoubtedly is the best action to take, and, I may add, after fully exploring it, it is quite plain that our action and the French action in the matter are exactly the same.
§ Mr. ManderCan the right hon. Gentleman say what action has been taken?
§ Sir J. SimonI do not think I could do that in answer to a supplementary question. It is an extremely complicated matter.
§ Mr. ManderI will put down another question?