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Volume 154: debated on Wednesday 31 May 1922

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asked the Chancellor of the Exchequer whether Indian Government loans, issued by Act of Parliament and by the authority of the Secretary of State for India and quoted under British funds, are ultimately a responsibility of the British Government?

The answer is in the negative. By Statute, loans raised under the East India Loans Acts are secured on the revenues of India alone in the, same manner as any other liability incurred by the Government of India. In the absence of a formal guarantee authorised by Parliament, the Consolidated Fund of the United Kingdom has no liability in respect of loans issued by the Indian or any other Government.