HC Deb 25 July 1939 vol 350 cc1243-5
49. Mr. G. Strauss

asked the Chancellor of the Exchequer what was the nature of the representations made by the Treasury to a bank whose headquarters are in London and whose branch at Shanghai was co-operating with the Japanese authorities in weakening the Chinese Exchange Fund of which His Majesty's Government has guaranteed £5,000,000?

The Chancellor of the Exchequer (Sir John Simon)

No such representations have been made by the Treasury.

Mr. Strauss

Does that mean that no approach at all has been made by the Treasury to the Bank of Shanghai?

Sir J. Simon

My answer means just what it says. I was asked whether representations had been made by the Treasury, and the answer is "No."

53. Mr. Bellenger

asked the Chancellor of the Exchequer whether he has noted the further depreciation in the exchange value of the Chinese dollar; and whether the resources of the Currency Stabilisation Fund have now been exhausted?

Sir J. Simon

The hon. Member will, I think, appreciate that secrecy must be observed in regard to the current position of the Chinese Currency Stabilisation Fund, just as in the case of our own or other exchange equalisation funds.

Mr. Bellenger

Is the right hon. Gentleman aware that there is no secrecy about the fact that the Chinese dollar has depreciated by something like 50 per cent. since he asked this House to vote British taxpayers' money to keep that dollar stable? Are we to assume that His Majesty's Government intend to allow the Chinese dollar to find its own economic level?

Sir J. Simon

On the last point, I can add nothing to the answer I gave to the hon. Member's question on nth July.

Mr. Noel-Baker

Can the right hon. Gentleman assure us that the Government still regard it as in the British interest that the exchange value of the Chinese dollar should be maintained?

Sir J. Simon

I do not think I can add to my previous answer, which was that no further action is under discussion at the present time.

Mr. G. Strauss

Is it the policy of His Majesty's Government that the standard of the Chinese dollar should be maintained?

Sir J. Simon

I do not think that that was the question on the Paper, and it hardly arises out of the supplementary questions that have been asked.

Mr. Arthur Greenwood

Arising out of what the right hon. Gentleman said a moment ago, that no further action is intended, may I ask whether, in view of the fact that there has been this depreciation, and that it appeared to be the policy of His Majesty's Government to maintain the standard of the Chinese dollar, action should not be taken now to see that no further depreciation takes place?

Sir J. Simon

That, I think, would require further legislation.