§ 8. Captain MACNAMARA
asked the Secretary of State for Foreign Affairs whether he is aware that British Consuls 2393 in foreign countries charge British subjects in gold pounds and refuse to accept sterling currency; and what is the reason for this practice?
§ The SECRETARY of STATE for FOREIGN AFFAIRS (Mr. Eden)
I assume that my hon. and gallant Friend has in mind the instructions under which British consular officers receive fees only in local currency calculated at not lower than the par rate of exchange. The reason for this practice is to provide in part for the additional cost in sterling of the local currency required for maintaining British diplomatic and consular establishments in countries where sterling is at a discount. In such countries the provision thus required would not be secured if local currency were accepted at the current rate of exchange or sterling currency were to be accepted as though it were of its face value in gold.