FOREIGN LENDING

Dominion, Volume 31, Issue 110, 3 February 1938, Page 11

FOREIGN LENDING

Britain To Give More Latitude EXPANSION OF TRADE London, February 1. The Chancellor of the Exchequer, Sir John Simon, announced in the House of Commons an important change in lending policy. Greater latitude is to be given for foreign lending on a long-term basis, but consent for certain foreign issues cannot be given indiscriminately, particularly those on behalf of foreign Governments, foreign local or public authorities, or State-controlled organisations. Sir John Simon, in explaining the direction in which greater latitude in respect to foreign lending was contemplated, said that he referred particularly to loans for the purpose of assisting in developing enterprise in foreign countries, and to transactions involving large blocks of foreign owned securities. Sir John Simon added that foreign short-term lending of a non-eommercial character raised special difficulties which rendered it generally undesirable.. The Leader of the Opposition (Mr. C. R. Attlee) and'several other members expressed doubt as to whether the change of policy announced might not encourage lending to Rowers re-arm-ing with aggressive intentions. Sir John Simon said that he was surprised at these suspicions. The general purpose of the policy was to enlarge foreign trade, while individual cases could be scrutinised as before. His suggestion was in the direction of one of the proposals made in M. Van. Zeeland’s report, and he hoped it would be largely welcomed.

M. Van Zeeland's report on the possibility of removing the barriers to international trade emphasised the urgency for suppressing restrictions on payments for merchandise, but recognised that it was necessary first to arrive at an agreed adjustment of external debts. Debtor countries must be supplied with credit facilities to enable them to support their export trade and finance part of their imports. VAN ZEELAND REPORT Britain To Make Careful Study Of Plan (British Official Wireless.) Rugby, February 1. In a House of Commons answer on M. Van Zeeland’s report regarding international trade, the Prime Minister, Mr. Neville Chamberlain, said that the proposals raised many complications, financial, economic, and political. These would require careful study, and ho could not make any statement until Sjuch study had been completed. He added that he hoped that thb proposals would be examined everywhere in the same objective and constructive spirit as had inspired its compilation. The report would be taken as an urgent matter, he added, and he agreed with Mr. George Lansbury (Labour) that, the next move lay with the French and British Governments. BRITISH PREFERENCE Dominion’s Most Vital Commodities London, February 1. The Australian Associated Press Agency says it is now virtually settled that Imperial preferences on what tlie Dominions regard as their most vital commodities will remain unaltered, whatever form the proposed AngloAmerican trade treaty takes. In the House of Commons, Mr. Oliver Stanley, President of the Board of Trade, stated that the British delegation to Washington for tlie trade talks would include officers from the Dominions Office.