HC Deb 02 May 1939 vol 346 cc1691-2
50. Sir John Mellor

asked the Chancellor of the Exchequer whether, in view of the uncertainty prevailing among members of stock exchanges, he will give an assurance that he does not propose to discourage transactions in foreign securities, where vendor and purchaser are both resident within the United Kingdom, or the purchase abroad of securities of a British Dominion expressed in terms of the currency of that Dominion?

Sir J. Simon

I would refer my hon. Friend to the answer given to him by my hon. Friend the Financial Secretary to the Treasury on Wednesday last, from which it should be clear that I can give no such assurances.

Sir J. Mellor

Is my right hon. Friend aware that the rather indefinite character of his pronouncements and those of the Financial Secretary to the Treasury upon this subject have caused considerable doubt in the minds of brokers and dealers in securities as to exactly what he wants them to do or not to do? Will he be prepared to make a fuller statement in order that they may know what is in his mind?

Sir J. Simon

I can make a very short supplementary answer now. On 20th April I stated quite plainly that the export of capital at the present time was undesirable in the general national interest. As regards foreign issues generally, they are now regulated by the Foreign Transactions Advisory Committee which has proceeded without any statutory authority and most effectively. This control depends on the good will of those concerned to fall in with the wishes which have been expressed on the matter, and I think that I may fairly hope that the private investors will similarly respond to the very definite expression of opinion which has been made with regard to investments in foreign securities.

Sir J. Lamb

Could my right hon. Friend say what would be the effect on the Stock Exchange if he were to remove all restrictions?

Mr. R. J. Taylor

Can the right hon. Gentleman say whether those wishes have had any effect in preventing the sale of gold overseas?

Sir J. Simon

The hon. Gentleman is mistaken in supposing that the movement of gold is to be explained by this matter. It is not to be explained by it at all.

Mr. Thorne

May we take it for granted that the hon. Member who put down this question would have no objection to lending £100,000,000 to Germany?