§ 3. Colonel WEDGWOODasked the Under-Secretary of State for India whether, seeing that up to the 28th February the Government had purchased sterling in India to the extent of £46,317,000 in connection with the policy of not allowing the exchange to go above 1s. 6 3/16d., now that the exchange has fallen below that figure, the Government propose to continue to maintain stability of the exchange at about 1s. 6 3/16d. pending the Report of the Currency Commission?
§ The UNDER-SECRETARY of STATE for INDIA (Earl Winterton)My Noble Friend and the Government of India are closely watching the Indian exchange. I am not prepared to add anything further at the present time.
§ Colonel WEDGWOODIs not the Noble Lord aware that previously he informed the House, in answer to a question, that the exchange would not be allowed to vary pending the Report of the Currency Commission, and have the views of the India Office changed now that the exchange has fallen?
§ Earl WINTERTONI do not recollect answering in exactly that form. I will see what answer I gave. I have given now the only answer I am prepared to give. The right hon. and gallant Gentleman will realise the extreme importance of this question of exchange currency, and also realise, no doubt, that, as is the case of the British Government, it is very unsound to give any answer to a question as to what the policy of the Government of India is going to be in a hypothetical situation.
§ Colonel WEDGWOODCan the Noble Lord tell us when the Currency Commission is likely to report?
§ Earl WINTERTONI am sorry that I cannot, because the Commission is sitting at present three days a week. It will, I think, probably report about the end of April or the beginning of May.
§ Sir FREDRIC WISEDoes the £46,000.000 odd represent the cost of pegging the rupee?
§ Earl WINTERTONMy hon. Friend knows the situation and can draw his own conclusions from the answer I have given.
§ Sir F. WISEThank you.