HC Deb 05 July 1949 vol 466 cc1965-6
57. Colonel Crosthwaite-Eyre

asked the Chancellor of the Exchequer if, in view of the fact that Pakistan has had to buy steel outside the sterling area, as no other supplies were available, and coal and textiles because prices in the sterling area were too high, and in view of the drain such purchases must make on sterling area reserves, he will make a statement on the steps to be taken to remedy this situation.

Sir S. Cripps

Trade and financial discussions are at present proceeding with representatives of the Government of Pakistan, and I am not in a position to make any statement.

Colonel Crosthwaite-Eyre

Is the Chancellor not aware that statements of a grave nature were made that a number of primary commodities, such as steel, textiles, and so on, had to be bought outside the sterling area because they were not available in this country? Is he not aware that it is this sort of drain which is aggravating our present position?

Sir S. Cripps

We have an arrangement with the Government of Pakistan that neither of us will make any statement on these negotiations while they were proceeding.

Colonel Crosthwaite-Eyre

This is not a question of negotiation; it is a question of fact. Is it not true that the fact that steel and other goods have to be bought outside the sterling area has resulted in a most unwelcome drain upon us?

Sir S. Cripps

Obviously, whether or not Pakistan has had to do something is not a question of fact, it is a question of opinion.