§ 54. Sir J. Mellorasked the Chancellor of the Exchequer whether he will make a statement as to the Government's policy 1852 with regard to the purchase of foreign investments by British persons and companies, and as to the steps he has taken, or proposes to take, to give effect to such policy?
Mr. ChamberlainI would refer my hon. Friend to the terms of reference and instructions of the Foreign Transactions Advisory Committee presided over by Lord Kennet, which were set out in the reply given to my right hon. and gallant Friend the Member for Ripon (Major Hills) on 7th April last. I was recently informed by Lord Kennet that, in their consideration of proposals for new issues by Investment Trust Companies, the Committee felt that the proportion of such new issues invested abroad should be confined to the minimum necessary to the conduct of the business in accordance with the ordinary practice of Investment Trusts, and further that if in the case of the applicant company the proportion of foreign investment should be unusually high the general purpose of the Government should be furthered by a reduction of that proportion as occasion may serve. The Chairman of the Committee has with my approval communicated the substance of this view, which has my concurrence, to the chairman of the representative association of Investment Trust Companies.