§ Mr. Attlee(by Private Notice) asked the Chancellor of the Exchequer whether he has any statement to make in connection with His Majesty's Government's policy on foreign lending?
§ Sir J. SimonYes, Sir. The House will recollect that on 1st February, 1938, I stated that, in view of the condition of our exchanges at that time, greater latitude would, until further notice, be allowed in respect of certain applications to the Foreign Transactions Advisory Committee. In view of present circumstances, the Foreign Transactions Advisory Committee came to the conclusion, in which I concur, that an immediate restriction is now required of the greater latitude then announced, and I have reason to think that the need for such restriction is generally acknowledged. Accordingly, I take this opportunity of stating that the temporary relaxations made in February have been withdrawn.
§ Mr. BellengerHas the right hon. Gentleman come to this conclusion in view of the position of the currency of this country?
§ Sir J. SimonIt is a conclusion that has been reached both by the Advisory Committee and by myself, after considering all the relevant factors. Currency, no doubt, was one, as is well known to the hon. Gentleman.
§ Mr. BellengerWas one of the purposes of the conclusion, of which the right hon. Gentleman has just informed the House, to strengthen the English sterling currency?
§ Sir J. SimonThat is so.