§ 50. Colonel WEDGWOODasked the Chancellor of the Exchequer whether he can make any statement as to the tieing of sterling to the franc and the attitude towards this stabilisation of the Dominion Governments and the Governments of those countries in the sterling area?
§ The FINANCIAL SECRETARY to the TREASURY (Mr. Hore-Belisha)There is no truth in any suggestion that sterling is tied to the franc. The policy of His Majesty's Government, as my right hon. Friend has often stated, is to prevent frequent and wide fluctuations in the exchange due to purely speculative influences. No inference can be drawn from the fact that the fluctuations in the gold value of sterling are not very wide at this particular time. My right hon. Friend has no reason to suppose that the Dominion Governments and the Governments of countries in the sterling area see any objection to the policy stated above.
§ Colonel WEDGWOODIs it not a fact that during the last six months the £ has remained constant in value of francs; and will he answer the second part of my question, as to whether the Dominion Governments particularly wish that constant valuation with the franc to remain, or whether they are anxious to see a more suitable and lower valuation of the £?
§ Mr. HORE-BELISHAThe answer to the second part of my right hon. and gallant Friend's question depends on the first part, and, as I have informed him, the first part is unfounded. Sterling is not tied to the franc.
§ Colonel WEDGWOODHas it not in actual fact remained constant in relation to the franc for the last six months?