The Archive · 1938

Inconvertible Paper Money

In reply to a further question by Mr, Hannah, Mr. Butler stated that no formal reply had been requested in the representations made to the Japanese Government with regard te the embarrassment caused to British trade in North China by the imposition of an inconvertible paper curency by the Japanese-controlled Federated Reserve Bank."

His Majesty's Government, however. Mr. Butler declared, was relying on the Japanese Government to refrain from measures which would have the effect of freezing credit facilities.

Sir John Wardlaw-Milne, Conservative member for the Kidderminster Division of Worcestershire, renewed his question whether a report had been received from Sir Robert Craigie with regard to the matte: raised in protests by the British Gov ernment in December last and April this year, in connection with assaults by Japanese on British subjects in the International Settlement, and regarding the result of General Ugaki's examination of the matter The "settlement in Spain" attached as a condition for the bringing into operation of the Rome agreements, was again the subject of several questions in the House of Commons yesterday.

The Prime Minister, Mr. Neville Chamberlain, gave a negative answer to a question as to whether, during the negotiations the British and Italian representatives came to an understanding on what was implied by the phrase, but mentioned in another reply that since the conclusion of the agreements there had been a confidential exchange of views between the two governments on the subject.

Mr. Chamberlain declared, however, that he had never committed himself to a complete or even partial definition of the phrase.

A Labour Member then enquired if the Italian Government was, therefore, as much in the dark to the intentions of His Majesty's Government as, according to this Member, the House of Commons was.

Text read from the printed page and cleaned; old type leaves the occasional error.

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