ABSTRACT
The gross amount of foreign capital employed includes all outstanding obligations, and the net figures show the deductions which must be made on account of the foreign investment which some debtors have themselves undertaken. Germany was the largest debtor, but about half her obligations were on short-term. The genuine desire on the part of the debtors to fulfill their obligations is shown by the manner in which, without exception, they have given absolute priority to the League Loans before any other external obligations. Investment in India has been, on the whole, very satisfactory, judged by the criteria employed in this chapter. There has been little unproductive government borrowing, and India has been able to maintain a favourable balance of trade over a long period. A survey of investment in the British Empire would be incomplete without a passing reference to three more or less independent states which have close financial connexions with Great Britain: Palestine, Iraq, and Egypt.
