§ 52. Mr. Errollasked the Chancellor of the Exchequer if, in order to assist merchants contemplating triangular transactions, he will state whether the Exchange Control regards Egyptian pounds as a more valuable foreign currency than Dutch guilders; and how these two currencies stand in relation to pounds sterling earned by Germans trading in the Anglo-American zone of Germany.
§ The Financial Secretary to the Treasury (Mr. Glenvil Hall)Egypt and Holland are both within the transferable account countries listed in Schedule Four of the Exchange Control (Payments) Order, 1947 (S.R. & O. 1947, No 2072). In respect of current transactions, sterling is freely transferable between accounts of transferable account countries. All sterling earned by bizonal trade with the sterling area is paid into the J.E.I.A. No. 1 Account at the Bank of England, in accordance with paragraph 3 of the Revised Fusion Agreement. The balance on this Account in excess of £1,500,000 is adjusted quarterly in dollars, and is not convertible into either Egyptian pounds or Dutch guilders. Special permission is required for transfers between the accounts of transferable account countries and those of other countries outside the scheduled territories. The grant of such permission depends, amongst other things, upon the relative scarcity of the currencies, and, as this factor varies almost from day to day, merchants contemplating triangular transactions should approach their banks for current advice on these questions.
§ Mr. ErrollCould the Minister cut out some of this red tape?