Mr, Elis Smith, Labour member for the Stoke Division of Stoke-on-Trent, moving the rejection of the Bill, argued that it was impossible to checke Auctuations unless a different political and economic policy was pursued by the Government in the Far East.
'He accused the Government of "failing to take the lead in humani arian assistance to. the Chinese people, because they did not want to offend' Japan." Mr. Smith went on to say that the Government's policy uring the past eight years had been to "do a deal" with the aggressors at the expense of their victims.
Mr, John Tinker, Opposition Labour member for Leigh, seconding the amendment, declared that what the Government was now doing was the "result of our not making a stand when Japan invaded China."
Mr, William Waldorf Astor. National Conservative member for East Tule ham, said that he hoped the amend. mani would not be pressed. Me said that nothing would more hearten the Chinese Government and people than that the House should pass the Bill that those best qualified to judge Inclined to think, that the plan would, {in practice, break down.
If an attempt were made to alter the dollar rate from siad. to 1s. 2d. the immediate result seemed likely fo be the cessation of the trade, and it seemed that China's fender currency would continue to lreulate, except in the towns, and. slong the railways, where Japan's control was effective.
Capt. Wallace said that the place of operation of the fund would be Hong-ong. and that the £10,000,000 would subscribed immediately.
Interest on the fund would be available to help Chinese banks to pay the interest due to the British ames.
The interest had been agreed at 2% per cent. for the present.
Tt the agreement were renewed afler a year, a higher or lower rale of interest' might be appropriate.
The reason why the upward rate of terest had not been detailed in the Bill, Captain Wallace explained, was that the agreement might continue 19 Fun for a number of years, and "we Ald for Lancashire Mr, W, A. Burke, Opposition Labour member for Burnley, said that they lid to be very thankful for any con cession, however, small, towards Fetaining the cotton trade, and helping them to maintain the markets they had got.
'He believed, however, that Japan's struggles would really' begin when the war was over. If the amendment were pressed to the point of a division the House, he said, he would have to vote for the Government.
Mr. Frederick Bellenger, Labour member for the Bassetlaw' Division of Nolts, said that, if the purpose of the Bill was to foster Sino-British trade, he would support it.
At this point Sir John Simon intervened to give the House an assurance that that was the purpose of the Bill.
Mr. Bellenger asked whether the fund would be operated in co-opera Yon with the United States and France, in the same manner as the artiste agreement,
Text read from the printed page and cleaned; old type leaves the occasional error.