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Czechoslovakia is already in operation. The House will
realise that the formal Treaty of guarantee has yet to be drawn
up and completed in the normal way, and, as the Foreign
Secretary has stated in another place, there are some matters
which must await settlement between the Governments
concerned. Until that has been done, technically the guarantee
cannot be said to be in force. His Majesty's Government,
however, feel under a moral obligation to Czechoslovakia to
treat the guarantee as being now in force. In the event,
therefore, of an act of unprovoked aggression against Czecho-
slovakia, His Majesty's Government would certainly feel
bound to take all steps in their power to see that the integrity
of Czechoslovakia is preserved/[OFFICIAL REPORT, 4th
October, 1938 ; col. 303, Vol. 339.]
" That remained the position until yesterday, and I may say
that recently His Majesty's Government have endeavoured
to come to an agreement with the other Governments repre-
sented at Munich on the scope and terms of such a guarantee,
but up to the present we have been unable to reach any such
agreement. In our opinion the situation has radically altered
since the Slovak Diet declared the independence of Slovakia.
The effect of this declaration put an end by internal disruption
to the State whose frontiers we had proposed to guarantee
and, accordingly, the condition of affairs described by my
right hon. Friend the Secretary of State for the Dominions,
which was always regarded by us as being only of a transitory
nature, has now ceased to exist, and His Majesty's Government
cannot accordingly hold themselves any longer bound by
this obligation.
" In the second place, I think the House would like to know
the position as regards the financial assistance to the former
Government of Czechoslovakia authorised by the Act of
Parliament passed last month. As far as I have been able to
ascertain, the present position is as follows. Section i of the
Act provides that the Treasury shall repay to the Bank of
England 10,000,000 which has been placed at the disposal
of the National Bank of Czechoslovakia. That has been
done. The amount that has been withdrawn by Czecho-
slovakia since the advance was first made available last October
is 3,250,000, and the balance of 6,750,000 remains in the