§ 11. Captain CUNNINGHAM-REIDasked the Secretary of State for the 323 Colonies how the official rate of exchange between francs and the pound sterling adopted by the Condominium Government of the New Hebrides is determined; how often this rate is reviewed in the light of the local commercial rates of exchange; and if he is satisfied that the system is sufficiently flexible to avoid prejudice to the financial interests of the British Government in the event of violent fluctuations of the franc?
§ The UNDER-SECRETARY of STATE for DOMINION AFFAIRS (Mr. Malcolm MacDonald)I am replying for the Secretary of State for the Colonies. The rate of exchange for Condominium Government purposes is fixed by agreement with the French Government. The rate adopted in the Protocol of 6th August, 1914 (Cmd. 1681), was 25 francs to the pound sterling, and this rate was adjusted to 124 francs to the pound sterling by an exchange of notes in September, 1930 (Cmd. 3690). The rate has not been altered since but the question is under discussion between His Majesty's Government and the French Government, and the point to which my hon. and gallant Friend draws attention will of course be borne in mind.