BRIISH LENDING POLICY

Press, Volume LXXIV, Issue 22591, 22 December 1938, Page 9

BRIISH LENDING POLICY

SIR JOHN SIMON'S ANNOUNCEMENT

TEMPORARY RELAXATIONS WITHDRAWN

IBRITISB OFFICIAL WIXKLXSa.) (Received December 21, 9 p.m.) RUGBY, December 20. The Chancellor of the Exchequer (Sir John Simon) made the following statement in the House of Commons: "The House will recollect that on February 1 I stated that in view of the condition of our exchanges at that time greater latitude would, until further notice, be allowed in respect of certain applications to the Foreign Transactions Advisory Committee.

"In view of present circumstances, th- Foreign Transactions Advisory Committee came to the conclusion in which I concur—that an immediate restriction is now required of the greater latitude then announced. I have reason to think that the need for such restriction is generally acknowledged. Accordingly I take this opportunity of stating that the temporary relaxations made :n February have been withdrawn."

In a statement in the House of Commons on February 1, Sir John Simon announced the intention of the Government to relax temporarily the restrictions on foreign borrowing. The relaxation applied to two classes of foreign issues: (a) the raising of new money on the London market by British borrowers for acquiring assets or developing enterprises in foreign countries, and" (b) transactions involving large blocks of foreign-owned securities. Sir John Simon announced that applications for such loans should con tinue to be made to the Foreign Transactions Advisory Committee, so that the Treasury in consultation with the committee could keep itself informed of the progress and nature of foreign lending