HC Deb 26 July 1949 vol 467 cc2248-9
57. Mr. Gammans

asked the Chancellor of the Exchequer what was the amount of the sterling balance claimed as due to India at the end of the war; by how much this had been reduced at the time of the partition of India; and what are the sums claimed by India and Pakistan at the present time.

Mr. Glenvil Hall

In the Financial Agreement of 14th August, 1947, the sterling assets of undivided India were put at £1,160 million. I regret that I cannot disclose the size of the balances at other dates. Such information as can properly be given about releases from the sterling balances will be made available when the current financial negotiations are completed.

Mr. Gammans

Will the right hon. Gentleman deny that fairly large sums of sterling have, in fact, been released without any corresponding imports, and that the case for scaling down these balances has been very largely allowed to go by default?

Mr. Glenvil Hall

I do not think I can add to the answer I have already given. Negotiations are now proceeding, and an announcement will be made in due course.

Mr. Oliver Stanley

Can the right hon. Gentleman say why there must be all this secrecy about sterling balances. Surely we are entitled to know how much has been paid off during the years since the figure which the right hon. Gentleman mentioned began.

Mr. Glenvil Hall

It is I understand the accepted practice. I have no doubt it goes back some years, and Governments of which the right hon. Gentleman was a distinguished Member took this line.

Mr. Stanley

Does the right hon. Gentleman really believe that pre-1939 there ever was a case of balances similar to this? We might have had balances behind the currency of a particular country or Dominion, but nothing in the same class as this. Will he not reconsider whether it would not be perfectly safe to give the country the information which it ought to have—the amount that is being paid off these balances by unrequited exports?

Mr. Stokes

Would my right hon. Friend consider settling this matter by sending the Indian Government a bill for this amount for saving them from the Japanese?

Colonel Haughton

Would it not be true to say that the final settlement to which the Financial Secretary made reference might lie years ahead, five or ten years in the future?

Mr. Glenvil Hall

Yes, Sir, that is quite likely.

Mr. Stanley

Are we never to know it?

Mr. Gammans

If I put a Question down when the House reassembles will the right hon. Gentleman give me the information then, or is it one of those things we are never to hear?

Mr. Glenvil Hall

Shall we see the Question on the Paper and then see what sort of an answer it gets?