HC Deb 29 June 1948 vol 452 cc1998-2000
45. Mr. W. Fletcher

asked the Chancellor of the Exchequer if he will make a statement on the effect of the recent action of the Argentine Government regarding the peso-sterling cross rate on financial agreements concluded between the two countries.

Sir S. Cripps

The recent action by the Argentine Government does not contravene the terms of our Trade and Payments Agreement with Argentina. The possible effects on our balance of payments with Argentina are at present under examination.

Mr. W. Fletcher

In view of the very far-reaching effect it must have, not only on the purchase of food and the export drive, will the right hon. and learned Gentleman or the Minister of Food or the President of the Board of Trade make some statement to this House soon on this unilateral action?

Sir S. Cripps

As I have said, the matter is now under examination.

Colonel Crosthwaite-Eyre

As this institutes a free cross rate, can the Chancellor also give an assurance that the examination will include its effects on the triangular trade between ourselves, the sterling area and Argentine?

Sir S. Cripps

It is under examination in all the effects it has.

Mr. Oliver Stanley

When the right hon. and learned Gentleman has concluded this examination, will it be possible for him to take any steps, in view of the fact that, although this causes grave injury, he says it is within the letter of the agreement?

Sir S. Cripps

I must wait until I see the results of the examination before I can take any step to put it right.

Mr. Stanley

It is not a question of examining so much the effect as whether this is within the terms of the treaty or not, and if it is within the terms of the treaty, is it not a mistake to have treaties which allow things to be done by the other party which certainly are not contemplated in the negotiations?

Sir S. Cripps

I have stated already that it does not contravene the terms of the treaty. A great many things may happen which are not dealt with in treaties and one then has to examine them to see what their effect is before deciding whether action is to be taken, or what action is to be taken.

Mr. W. Fletcher

Will the right hon. and learned Gentleman make a statement when he has examined this matter?

Sir S. Cripps

If the hon. Member puts down a Question in a week or two's time, I will see.