§ 58. Colonel Crosthwaite-Eyreasked the Chancellor of the Exchequer what percentage of current earnings by members of the sterling area of gold and hard currency, is placed at the disposal of the sterling area pool.
§ Mr. JayAs the hon. and gallant Member is aware the sterling area is based on the principle that all members pool their gold and dollar earnings, and draw from the pool to meet their requirements. In some cases, it may be convenient for a small proportion of the earnings to be withheld. But this proportion is negligible, and the practice does not infringe the principle I have mentioned.
§ Colonel Crosthwaite-EyreIs it not a fact that with a certain number of members of the sterling area the Government have entered into contracts that they may retain current earnings of gold and hard currency for their own use?
§ Mr. JayNo, Sir. The sterling area has never been a rigid, uniform arrangement. It has always been found convenient for small working balances of this kind to be retained. There are no arrangements of that kind which affect large proportions of dollars and gold.
§ Mr. W. FletcherWould the hon. Gentleman agree that this system is already causing great upset, in that Malaya, which is concerned with dollars, and whose dollars are being retained here, is already asking for special treatment at the expense of the rest of the sterling area, which is a sign of the great stress created by the system?
§ Mr. JayI quite agree that if we departed from the present general principle there would be dislocation of the whole basis of the working of the sterling area.
§ 59. Colonel Crosthwaite-Eyreasked the Chancellor of the Exchequer if he will publish at regular intervals a statement showing the total amount of gold and hard currency expended by each member of the sterling area; such statement to include for each country concerned current earnings and sums released to them by the sterling area pool.
§ Mr. JayAs my right hon. and learned Friend stated in answer to a similar Question of the hon. and gallant Member on 30th April, 1948, he is not prepared to give information of this nature about individual sterling area countries.
§ Colonel Crosthwaite-EyreEven if he is not prepared to do that, can the hon. Gentleman say that he or his Department have it, so that, in fact, the Government can see an equal strain is taken by all members of the sterling area?
§ Mr. JayYes, certainly we have the information, and we do seek to ensure that things work out in the way the hon. and gallant Gentleman suggests.