§ 11. Mr. CLOUGH
asked the Secretary of State for India whether he is aware of the serious effect on British trade of the wholesale cancellation of Indian contracts due to the fall in the rupee; whether the Government of India undertook to stabilise the rupee at 2s.; whether he is now investigating the commercial crisis which has arisen; and what steps he proposes to take to remedy the situation?
§ Mr. MONTAGU
I am aware of the serious effect on the United Kingdom export trade of the recent fall in the rupee exchange. As regards the second part of the question no such undertaking 407 has been given, but as stated in the announcement issued on 2nd February last the objective of Indian currency policy is the stabilisation of the rupee exchange at 2s. gold, the rate recommended by the Majority Report of the Indian Currency Committee of 1919. With a view to the support of exchange, drafts on London have been sold by the Government of India to the extent of £50,000,000 since this policy was announced, but the effect of these sales has been obscured for various reasons, in particular on account of the stagnation of the export and unusual strength of the import trade of India in recent months.