HC Deb 13 July 1948 vol 453 cc1011-2
47. Mr. William Shepherd

asked the Chancellor of the Exchequer the total annual amounts of repayments of sterling balances agreed upon for the current year.

57. Colonel Crosthwaite-Eyre

asked the Chancellor of the Exchequer for what reason His Majesty's Government have agreed to release sums from sterling balances in 1948 at approximately treble the annual rate of 1947.

The Chancellor of the Exchequer (Sir Stafford Cripps)

In my answer to the Question asked by the hon. and gallant Member for New Forest and Christchurch (Colonel Crosthwaite-Eyre) on 29th June, I gave particulars of sterling releases and working balances provided for under agreements at present in force. Apart from the latest agreements with India and Pakistan, about which I shall be making an announcement shortly, further releases amounting to £25 million are due to be made from sterling balances up to the end of 1948, bringing the total sums so far released for current purposes (excluding initial working balances) to £82.5 for the whole year. The suggestion contained in the question of the hon. and gallant Member for the New Forest and Christchurch is, therefore, not correct.

Mr. Shepherd

In view of the fact that the Government have already committed the country far beyond the bounds of prudence, will the Chancellor give an undertaking that he will not release any more sterling balances for the current year in any subsequent agreements and, secondly, will he answer Question No. 48?

Sir S. Cripps

I will when the time comes.

Colonel Crosthwaite-Eyre

May I ask the Chancellor, when he says the figures quoted in my Question are not correct, whether this is because he excludes working balances from his computation and, secondly, if he was correctly reported yesterday in saying that the prime duty of England was to see that our imports were paid for by exports, why he has released this grossly excessive amount, which must result in unrequited exports?

Sir S. Cripps

In answer to the first part of the Question, I did not suggest that the hon. Member's figures were wrong. I suggested that the implication which he drew from them was wrong. As regards the second part of the Question, we are satisfied that it is in the best interests of this country that these arrangements should be made.

Mr. Oliver Stanley

May I ask the right hon. Gentleman whether, with the exception of India and Pakistan, to which he referred, there are any other agreements which are likely to be made during the course of the year?

Sir S. Cripps

Not that I am conscious of.

Mr. W. Fletcher

Does the right hon. and learned Gentleman's statement mean that we are now saddled with a further £25 million of unrequited exports?

Sir S. Cripps

It means in fact that for the general purposes of our economy we have thought it right that these sums should be released.

Colonel Crosthwaite-Eyre

But is the Chancellor aware that in the first five months of this year he has released £60 million more of sterling balances than in the whole of 1947, and how can this lead to anything but a greater drain on our unrequited exports?

Sir S. Cripps

Those figures are completely wrong, as the hon. and gallant Member will see if he looks into them.

48. Mr. W. Shepherd

asked the Chancellor of the Exchequer to what extent interest paid on blocked sterling balances is available for payment of purchases on current account.

Sir S. Cripps

Interest paid on blocked sterling balances is as a general rule available for purchases on current account.

Mr. Shepherd

As this is yet a further drain upon our limited resources, will the Chancellor give an undertaking that he will not reproduce this agreement in any subsequent deals which he makes on the subject of sterling balances?

Sir S. Cripps

Certainly not. It is taken into account when the other matter of releases is considered.