§ Sir A. KNOXasked the Chancellor of the Exchequer if he is aware that the Hungarian Government, while failing to pay British bondholders, is subsidising the Royal Hungarian State workshops, which produces equipment at uneconomic prices, undercutting British locomotive builders in the Indian market; and whether he will take steps to prevent the use of British capital by a foreign Government to cause unemployment in this country?
Mr. CHAMBERLAINThe only important Hungarian Government long-term loan held in this market is the League of Nations Loan of 1924. Up to the present the interest on this has been paid in full. In 1934 it is intended to pay 50 per cent, of the interest in foreign exchange, 50 per cent, being retained in a blocked account in Hungary. This money will be lent back to the Hungarian Government to be employed on productive works. It is therefore hardly true to say that money due to British bondholders is being used to subsidise the iron works.