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DENY "ENCIRCLING GERMANY" LONDON, England, May 3.— Flatly denying Nazi charges of encirclement, Prime Minister Neville Chamberlain told the House of. Commons today that Great Britain is ready to consider proposals for exchange of reciprocal assurances with Germany. "There is no foundation whatever," he said, "for charges that the British government has adopted a policy of encircling Germany." The prime ministers announcement was greeted with cheers. Referring to Reichs-fuehrer Adolf Hitlers denunciation of the Anglo-German naval treaty in his speech to the reichstag last Friday, Chamberlain said: "His majestys government does not regard its assurances given to Poland as inconsist-! ent with that treaty."