§ 35. Sir Arnold Gridleyasked the Secretary of State for War if steps have been taken to prohibit the purchase of food- 19 stuffs by the Allied Forces in Italy, so that the same may be left available for the local inhabitants.
§ 87. Mr. G. Straussasked the Secretary of State for War, whether, in view of the inflationary consequences of the present exchange rate with Italy of 400 lire to the £ which results in free spending by Allied Forces and hoarding by the Italians in anticipation of rising prices and which is likely to lead to serious results, he will confer with the American Government as to the possibility of reducing the exchange rate to nearer its correct parity.
§ 88. Mr. Ivor Thomasasked the Secretary of State for War whether, in view of the inflationary tendencies which have been set in motion in liberated Italy, he is now prepared to recommend a rate for the lira-sterling exchange lower than 400 lire to the £.
§ Sir J. GriggI must first make it clear that I do not accept all the implications in these Questions. I am, however, aware of the shortage of supplies for the civil population in certain parts of Italy due to military stores and equipment having to take priority in shipping over imported foodstuffs for local needs. Purchases by the troops of foodstuffs in short supply have been prohibited and local purchase is regulated by Local Resources Boards but, despite this, there is no doubt that both in Fifth and Eighth Army areas such purchases have occurred. Everything possible is being done to check this indiscriminate purchasing by troops, but my hon. Friends will realise how difficult it is in practice to eliminate. The prices used in these black market transactions are not governed by rates of exchange. No alteration in the existing rate would, therefore, be effective in this connection.