HC Deb 24 May 1944 vol 400 c719
10. Flight-Lieutenant Teeling

asked the Secretary of State for Foreign Affairs if he can inform the House of the value of the pound sterling in Chinese dollars now and six months ago; and whether he can make any statement on how inflation in China is affecting funds subscribed in this country for Chinese relief and the payments for delivery of war material to China.

Mr. Eden

There has been no change in the official rate of exchange between the pound sterling and Chinese national currency during the last six months. There has, however, been a very substantial increase of prices in Free China. This has presented a serious problem as regards sums remitted to China for the purchase of goods there, including sums so remitted by funds subscribed in this country for Chinese relief, which is being urgently considered. No question as regards payments for delivery of war material to China arises since such material is supplied on lend-lease terms or out of credits.

Flight-Lieutenant Teeling

Is it not a fact that inflation in China is developing on somewhat similar lines to those seen in the case of Germany about 1923?

Mr. Eden

I do not know that I have enough knowledge to make those comparisons. All I can say is that we are studying the question in conjunction with the Treasury. The situation is an anxious one which we should all like to see improved.