File 1262/1915 Pt 2 'Persia: Financial assistance: The Moratorium' [‎326r] (415/424)

of America serving as a means for maintaining the stability of sterling exchange
m New York.
In the event of the scheme commending itself to the Dominion Governments
im ^ord» will he pleased to ask Parliament to give the requisite guarantees to
any Dominion loans raised for the purposes of the scheme on terms not more
lavourable to the investor than the present War Loan.
My Lords would be glad to have Mr. Bonar Law’s views on this question at
Ins early convenience.
1 am, &e.,
The Under Secretary of State, John Bradbury.
Colonial Olnce.
ENCLOSURE No. S ;—India Office to Tvcasuvy.
Sir,
F - 3710 - . India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. ,
t r a i i at o r ^ 5th August 1915,
I am directed by the Secretary of State for India in Council to acknow
ledge the receipt of your letter of the 15th July, No. 16,147/15 transmitrimr n
copy ol a letter of the 6th July addressed to the Secretary of State for the
Colonies in which it is suggested that War Loans should be issued locallv bv
the Governments of the several self-governing Dominions, subject to the
guaianteeb^ the British Government of the principal and interest of such
loans 1 he Lords Commissioners of the Treasury ask that consideration
should be given to the uqestion of the applicability with the necessary
modifications of this proposal to the special case of India. ^
In reply lam to acquaint you, for the information of the LordsCommis-
sloners, that a copy of your letter and its enclosure was forwarded by the mail
of the 15th July to the Government of India, who have been asked to state
tiieir views on the proposals.
The Secretary, Treasury. 1 Horderness.
ENCLOSURE No. 9 :— India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. to Treasury.
F. 4136. ‘ ’ i a-
O- ^ India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. ,
p r • , -i i . , . _ 20th August 1915.
, . .. . Fe / en yS to the letter from tins Office of 5th instant, I am directed to
01 naid, for the information of the Lords Commissioners of the Treasury a
copy of a telegram received from the Government of India, in which they
express tiieir views on the proposals conveyed in your letter No. 1C 147 of the
"h for t ie Jssue 111 ludla of a VVar L ° a >i carrying the guarantee of the
It will be observed that tlie Government of India do not regard the
suggestion with favour, and I am to enquire whether the Lords Commissioners
wish to pursue it further.
rri o mi J have, &c.,
1 he Secretary, The Treasury. Lionfx Abraiiams.
Annex -.—Telegram from Viceroy to Secretary of State, 9th August 1915.
TTp ease see your telegram of 4th August. In our opinion bad moral
amt political effect would be produced by advertisement of War Loan in India
on lines suggested by Treasury, inasmuch as it would suggest pessimistic
inferences as to severity of strain upon Imperial Government and would lead
therefore, to hoarding of resources, and possibly also to renewed discredit of
lost Office pavings Bank, Government Paper, and Currency Notes. We
consider whole experiment would be most dangerous.
A;-> regaids purely financial considerations, we maintain that suggested
can vould not attract fresh capital, but, on the contrary, would compete
direedy vith our own issues and draw on resources on which we must
oiuselves rely. We would be gravely prejudiced as regards future borrowim 1 *