HC Deb 21 October 1943 vol 392 cc1491-2
21. Mr. Sorensen

asked the Secretary of State for India whether he will give particulars respecting the loan of approximately 200 crores of rupees from the India people; what part public representatives will play in supporting this loan; and, in view of the incongruity of raising this loan during this period of grave food shortage, whether further appeals for War Loan will cease?

Mr. Amery

While certain borrowing operations, including a vigorous Small-Savings Campaign, are in progress in India, I am unable to identify the figure of Rs.200 crores mentioned by the hon. Member, but the Government of India have announced an issue of Rs.25 crores of 3 per cent. Funding Loan, 1966–68, to be issued in the market in the usual way. In so far as the rise in prices of foodstuffs is to be ascribed to a redundancy of purchasing power, its absorption by borrowing is one of the most effective measures that can be taken for the protection of Indian economy.

Mr. Sorensen

Could not money raised in this way be used to pay for imported grain and rice, to feed the starving population?

Mr. Amery

There is no difficulty about money. The difficulty is the actual physical distribution of the grain and its importation into the country.

Mr. Sorensen

Surely it has to be paid for?

Mr. Amery

Yes; but there is no difficulty about payment. There is more than enough money in India already.