asked the Chancellor of the Exchequer what is the approximate total of British loans outstanding and due by Italy; whether they are liable to fluctuation or variations of the exchange; and whether any rate of interest has been agreed with reference thereto?

Mr. GUINNESS:

The debt of the Italian Government to the British Government as on 30th June, 1925, is £589,530,000. This amount is payable in sterling and is not affected by variations in the exchange. Interest as it accrues, at the rate of 5 per cent. is added to the capital.

Until this debt is paid, will my right hon. Friend invite the Italian Government to cease or abate pro-Italian propaganda in Malta?

Order, order! That is quite improper matter to introduce into a supplementary question. I should require to scrutinise very carefully any question of that kind.

Will the right hon. Gentleman say whether the country in question has paid any principal and interest at all?

Mr. GUINNESS:

It has paid interest, but not principal. We have had communications with them, and they are considering the matter, we understand.

Sir F. HALL:

In regard to the £589,000,000 to which the right hon. Gentleman has referred, which he says does not include the interest, can he say what is the amount of compound interest for the period for which the amount has been due?

Mr. GUINNESS:

It does include interest.

Does the right hon. Gentleman say that Italy is paying the interest on the whole of her debt?

Mr. GUINNESS:

No, she is not paying interest.

Mr. ERSKINE:

Did the House understand that the Italian Government was paying the interest?

Mr. GUINNESS:

No—I misunderstood the question—certainly not.