§ 49. Mr. W. Shepherdasked the Chancellor of the Exchequer whether the commercial agreements entered into with the United States permit that country to issue tied loans; and whether the same freedom is accorded to His Majesty's Government in respect of release against sterling balances.
§ Sir S. CrippsBoth countries are free to make loans of any sort they choose, but I must add that this country is not at present in a position to make overseas loans, tied or otherwise. Releases against sterling balances are subject to Section 10 of the Anglo-American Financial Agreement, and to agreements made with the countries holding the balances.
§ Mr. ShepherdAs the tied loan is one of the most vicious weapons of international trade discrimination, will the right hon. and learned Gentleman bear it in mind when negotiating in the future with the United States?
§ Sir S. CrippsI will certainly bear all points in mind.