asked the Chancellor of the Exchequer whether the Treasury still holds sterling bonds for the full amount of the French Debt to Great Britain; and whether, in the absence of ratification by the French Government of the reduced terms, these bonds are still regarded as a security for the whole Debt?

Yes, Sir. The total amount of French Treasury Bills held is £720,960,300. They are 12-months Bills, and fall due in varying instalments on the 1st day of each month.

Are they still regarded as security for the whole Debt?

Yes, Sir.

Does not that envisage a possible departure from the principles of the Balfour Note, which should not be regarded as an unchangeable and sacred policy?

No, Sir. In the absence of ratification it constitutes our security.