asked the Under-Secretary of State for the Colonies if he can give any information as to when the Palestine Government loan will be floated; when he expects to receive back the £1,365,000 which has been loaned to the Palestine Government by the Crown Agents; and, as Palestine is not a colony but a mandatory country, why was such a payment ever made?

The Palestine loan will be floated when the Secretary of State is advised that a favourable opportunity has arisen, and repayment will be made to the Crown Agents of the sums advanced by them as soon as loan funds are available. These advances were made because the financial circumstances of Palestine appeared to require and to justify them. I do not see how the mandatory status of Palestine affects the question.

When this loan is floated some little time hence, will the British Government have to guarantee the principal and interest?

No, Sir; it will be treated like most Colonial loans, in the case of which the British Government does not guarantee the principal and interest.

Has the Palestine Government power to issue a loan simply on the request of the League of Nations?

No, Sir, certainly not. The League of Nations does not come in. The Secretary of State authorises the issue of loans for territories for which we are responsible and which we govern.

Will the Jewish issuing houses be given the first chance in regard to this loan?