§ 7. Mr. DAVID GRENFELLasked the Secretary of State for India what action the Government of India propose to take with regard to the representations made to them by the Federation of Indian Chambers of Commerce requesting the Government to put an embargo on the export of gold and protesting against keeping the rupee linked to sterling?
§ Sir S. HOAREI am satisfied, and I believe the Government of India are satisfied, that the exports of privately-owned gold, and the maintenance of the link between sterling and the rupee, have been of the highest advantage to India.
§ Mr. GRENFELLWill the right hon. Gentleman say whether in his opinion there should not be some limit to the export?
§ Sir S. HOARENo, I think that on the whole the export of gold has been beneficial to India and the world at large.
§ Mr. GRENFELLIs the right hon. Gentleman aware that 25 per cent of the gold in India has been taken away?
§ Sir S. HOAREEven if that be the case, I should not say it is regrettable. But no one has yet made an estimate as to how much gold there is in India.
§ Sir ARTHUR MICHAEL SAMUELIs my right hon. Friend aware that there is estimated to be from £500,000,000 to £1,000,000,000 of gold hoarded in India?
§ Mr. M0LS0NIs it not a fact that the linking of the rupee to sterling has had the effect of raising prices in India while not increasing the burden of debt outside, and that therefore it has been an unqualified benefit?