MONEY LENDING

Grey River Argus, 11 February 1938, Page 10

MONEY LENDING

British Policy MINISTERIAL DEFINITION. (British Official Wireless) RUGBY, February 1. Sir J. Simon, in the Commons, announced an important change, leading to a policy of greater latitude in foreign lending on a long-term basis, on behalf of British, including Empire borrowers,' but consent to certain foreign issues cannot be giveri indiscriminately, particularly those on behalf of foreign governments, foreign local or public authorities, or Statecontrolled organisations. Explaining , the direction in which greater latitude in foreign lending was contemplated, he said that he referred particularly to loans to Empire borrowers, for the purpose of assisting in developing enterprise in foreign countries, and to transactions involving large blocks of foreign-own-ed securities. Sir J. Simon added that foreign short-term lending of a non-commer-cial character raised special difficulties, which rendered it generally undesirable. The Opposition leader and several other members expressed doubt as to whether the change of policy announced might not encourage lending to Powers rearming with aggressive intention. Sir J. Simon said 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 that it would be largely welcomed. In an answer on the Van Zeeland report, Mr. Chamberlain said that the proposals raised many complications, financial, economic and political. These would require careful study and he could not make any statement until such study was completed. He added that he hoped the proposals would be examined everywhere in the same objective and constructive spirit as had inspired their compilation. He added that the report would be taken as an urgent matter, and he agreed with Mr. Lansbu'ry that the next move lay with the French and British Governments..