HC Deb 21 July 1943 vol 391 c868
6. Mr. Loftus

asked the Secretary of State for Foreign Affairs whether he is aware that Axis propaganda is using the sterling-lira exchange rate provisionally fixed for North-Eastern Africa for the purpose of stiffening the resistance of the Italian people against surrender to the demands of the Allies; and whether he is taking any steps to counteract such propaganda?

Mr. Eden

Yes, Sir. To counter this propaganda our broadcasts to Italy have included reports from the former Italian colonies, showing that the inhabitants are suffering no undue hardship.

Mr. Ivor Thomas

Am I right in thinking that the rate of exchange is 450 lire to the pound—five times the peace-time rate? Surely that contains the seeds of international bitterness in the future?

Mr. Eden

I should hope not, but the Chancellor of the Exchequer is dealing with this question on the next Sitting Day. My idea is that the Italians will soon be content to give any number of lire for one pound.