HC Deb 11 July 1949 vol 467 cc19-20
38. Sir W. Smithers

asked the Minister of Supply if he will now allow the London Metal Exchange to re-open.

39. Mr. Parkin

asked the Minister of Supply whether he has now concluded his consideration of the desirability of reopening the London Metal Exchange.

Mr. G. R. Strauss

I have carefully considered commercial and industrial representations on the advantages of reopening the London Metal Exchange, in particular the hedging facilities which this would provide. It is, however, generally accepted that a free market in non-ferrous metals would have to be severely restricted to prevent a loss of our dollar resources and I am convinced that these limitations, if they are to be effective, would so restrict the freedom of the market as largely to nullify the benefits which its advocates desire to bring about. Even more important, the abandonment of bulk buying of these commodities from Commonwealth countries would seriously endanger our supplies from these sources and make us more dependent on dollar purchases. For these reasons I am at present unable to agree to the re-opening of the Metal Exchange for the purchase and sale of copper, lead and zinc. Other considerations apply to tin, which is now the subject of international discussion. I have not, therefore, reached any conclusion about the future marketing of this metal.

Sir W. Smithers

In view of the announcement made at Chequers during the week-end, and the urge for more multilateral free trade, will the Minister please re-open the Exchange now and free metal from all controls? Will he cease to allow political bias to interfere with economic recovery?

Mr. Stanley

Does this mean that the right hon. Gentleman, if he does not propose to re-open the Metal Exchange, at least will make these metals available to industrial consumers at parity with world prices?

Mr. Strauss

Yes, Sir. New prices are being fixed today for copper, lead and zinc. That will bring them on a par with prices in the United States.

Sir W. Smithers

The Minister has just said that new prices are being fixed. By whom—by the Government, or by the law of supply and demand?