we made in respect of joint loans.  Up to the present very considerable advances have been made by Russia, by France, and by ourselves to other countries.  It is proposed that, if there is an opportune moment on the market, these should be consolidated at some time or other into one loan, that they should be placed upon the markets of Russia, France, and Great Britain, but that the liability shall be divided into three equal parts.

With regard to Russia, we have already advanced L32,000,000 for purchases here and elsewhere outside the Russian Empire.  Russia has also shipped L8,000,000 of gold to this country, so that we have established credits in this country for Russia to the extent of L40,000,000 already.  France has also made advances in respect of purchases in that country.  Russia estimates that she will still require to establish considerable credits for purchases made outside her own country between now and the end of the year.  I am not sure for the moment that it would be desirable for me to give the exact figure; I think it would be better not, because it would give an idea of the extent to which purchases are to be made outside by Russia.  But for that purpose she must borrow. The amount of her borrowing depends upon what Russia can spare of her produce to sell in outside markets and also on the access to those markets.

If Russia is able within the course of the next few weeks or few months to export a considerable quantity of her grain, as I hope she will be, as in fact we have made arrangements that she should, [cheers,] then there will not be the same need to borrow for purchases either in this country or outside, because she can do her own financing to that extent.

The two Governments decided to raise the first L50,000,000 in equal sums on the French and British markets respectively.  That will satisfy Russian requirements for a considerable time.  As to further advances, the allied countries will consider when the time arrives how the money should be raised according to the position of the money markets at that time.  I have said that we gave a guarantee to Russia that she need not hesitate a moment in giving her orders for any purchases which are necessary for the war on account of fear of experiencing any difficulty in the matter of raising money for payments.  We confidently anticipate that by the time these first advances will have been exhausted the military position will have distinctly improved both in France and in Russia.

I may say that Treasury bills to the extent of L10,000,000 on the credit of Russia have been issued within the last few days.  At 12 o’clock today the list closed, and the House will be very glad to hear that the amount was not merely subscribed but oversubscribed by the market, because this country is not quite as accustomed to Russian securities as France, and, therefore, it was an experiment.  I think it is a very good omen for our relations, not merely during the war, but for our relations with Russia after the war, that the first great loan of that kind on Russian credit in the market has been such a complete success.