asked the Prime Minister what reply the German Government has made to the demand of the Reparation Commission of 21st March, that it should produce a scheme to prevent the undue export of capital from Germany and to secure the return of capital already exported; and whether His Majesty's Government will refuse its assent to any postponement of payments by Germany until such a scheme is produced?

I would refer my hon. Friend to the Note addressed by the German Government on the 28th May to the Reparation Commission, and to the Reparation Commission's reply, dated 31st May, both of which have been published in the Press. My hon. Friend will have observed that the German Government states that it attaches very special importance to the return of exported capital, and is prepared to discuss in detail with the Committee of Guarantees the steps to be taken against the flight of capital, and, on the basis of such discussion, to adopt any measures that may be deemed useful for the purpose. The German Government will, before 30th June, 1922, submit to the Reparation Commission a programme setting forth the measures referred to above.