§ 48. Captain W. T. Shaw:asked the Chancellor of the Exchequer whether he is aware that the bank of the State of San Paulo have lying in a London bank the sum of, approximately, £98,000, 790 which was to have been used for the purchase by tender of that bank's 6 per cent. Guaranteed Sterling Mortgage Bonds, Series A, B, and C, but that the bank only accepted tenders for very small amounts; and will he give an assurance that the £98,000 will not be permitted to leave this country?
§ Sir J. SimonI have considered my hon. and gallant Friend's suggestion, but I do not feel able to adopt it.
§ 49. Sir A. Somervilleasked the Chancellor of the Exchequer whether there is any British control over the use, by overseas members of the sterling group, of sterling paid to them by Britain for supplies, or whether the recipients of the sterling are allowed to sell or use it for buying in markets outside the sterling group?
§ Sir J. SimonThe combined effect of the exchange control regulations in this country and the other countries which form part of the sterling area is that there is full control over the use by overseas members of the sterling group of all sterling paid to them by this country.
§ Mr. John WilmotIs it not a fact that foreigners who have sterling balances in this country can transfer them to other foreigners, who can use them for purposes not in the interests of this country?
§ Sir J. SimonThat is a rather different question, and I dealt with it the other day. If the hon. Member will look at this Question, he will see that it deals with balances passing between different members of the sterling group.
§ 50. Sir I. Alberyasked the Chancellor of the Exchequer whether, in requisitioning British-held dollar securities, any method is followed with a view to distributing the burden equitably over the various holders of the different securities?
§ Sir J. SimonThe primary consideration in choosing which securities shall be vested in the Treasury is that of the national interest, which requires that they shall be readily marketable abroad. My hon. Friend will have noticed that the Treasury Order made on 13th April has extended the operation over a wide field, and includes securities of varying classes.
§ Sir I. AlberyWill those who have their securities requisitioned obtain approximately the same price, or the same value, as the Treasury receive for those securities?
§ Sir J. SimonI have no doubt that my hon. Friend is aware of the regulation, which is that securities are taken over at the price of the day.
§ Sir I. AlberyYes; but that does not answer my Supplementary Question. Does the person who gives up the securities, in the interest of the State, receive approximately the same value as the State receives for those securities?
§ Sir J. SimonThe disposal of those securities by the State results in the State receiving sometimes more than it has paid for them, sometimes less.
§ Mr. J. WilmotWould it not be more equitable to requisition all dollar securities at the same time, rather than taking them in groups on a narrower and rising market?
§ Sir J. SimonFor practical reasons, it would not really be a good step to requisition the whole bunch of them at one time.
§ Sir I. AlberyDoes that mean that the Treasury is, in fact, speculating in American securities?
§ Sir J. SimonNo, Sir, it does not mean that. My hon. Friend knows the great advantage we are getting through our control of the orderly realisation of these assets.