Turning from long-term lending to short-term lending, Sir John Simon declared that foreign short-term lend. ing of a non-commercial character Involved considerations and raised special difficulties, which rendered it generally undesirable.
The Chancellor concluded his state~ ment with a tribute to the work of the Advisory Committee and to the loyalty and helpful spirit of the finan-dal community In implementing the Government's policy on foreign lend Ing, by voluntarily responding to the requests which had been made to it, from time to time.
The Opposition leader, Mr, C. Atlee, and several other members of the House expressed doubt and Concern whether the change of policy, fas announced, might not encourage lending to Powers which were rearming with aggressive intention, The Chancellor replied that "he was "surprised at these suspicions. The general purpose of the polly, he atlded, was to enlarge foreign trade, while individual cases would continue to be scrutinized as before.
He agreed with Mr. F, W, Pethick~ Lawrence, Labour menier' for East Edinburgh, that the announcement he had made was in the direction of tone of the suggestions contained in the van Zealand report. He added that, as such, he hoped it might be Largely welcomed—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.