§ 54. Sir F. Grahamasked the Chancellor of the Exchequer what guidance he has given to the Capital Issues Committee on the treatment of proposals to finance the export of capital goods by bank credits guaranteed by the Export Credits Guarantee Department.
§ Mr. MaudlingIn general, the Capital Issues Committee will continue to require applicants for leave to borrow for capital purposes to raise the finance where possible from non-banking sources: but the Committee has been informed that where the purpose of the proposed bank loan is to finance exports, and the Export Credits Guarantee Department has already indicated its willingness to issue a guarantee to the bank, refusal of consent would be inconsistent with the general policy of giving such guarantees direct to banks, which was introduced specifically to facilitate loans for the export of major capital goods. The Committee has therefore been asked to bear this in mind in considering applications for consent to such loans.