§ 14. Sir F. WISEasked the Undersecretary of State for India the amount 889 and what is being done with the large sums of sterling remitted to this country by the Government of India as a means of pegging the rupee exchange at about 1s. 63/16d.; and when does the Secretary of State propose remitting the amount back to India?
§ Earl WINTERTONThe remittances from India in the current financial year amount to about £26,500,000. Apart from £3,000,000 credited to the paper currency reserve against the issue of notes in India, the balance (namely, £23,500,000) remains at the account of the Home Treasury towards meeting the estimated remittance requirements of the year. The utilisation of drawings from India depends on their amount, money market conditions in India, and other factors which it is not possible to predict. My hon. Friend will understand that Government's permanent policy regarding the rupee exchange cannot be determined pending the Report of the recently appointed Royal Commission.
§ Sir F. WISEMay I ask whether the pegging of the rupee exchange in this way does not affect our trade?
§ Earl WINTERTONI cannot altogether accept the hon. Gentleman's interpretation of the situation as it stands, and I hope he will allow me to answer any farther question on the subject when the permanent policy is decided on, which will not be until after the Report of the Royal Commission.
§ Colonel WEDGWOODIn view of the effect of the pegging of the exchange on the export trade of Lancashire, are we to understand that there is. as stated in the question, a definite pegging of the rupee exchange at 1s. 6 3/16d.?
§ Earl WINTERTONNo, I have already said I cannot accept my hon. Friend's premises.