§ 68. Mr. Stokesasked the Chancellor of the Exchequer why gold is being sold to the United States of America for approximately £8 15s. the fine ounce when the world market price is £24.
§ Mr. JayThe United Kingdom sells monetary gold at the official United States Treasury price of 35 dollars per fine ounce, and this is in accordance with our adherence to the International Monetary Fund. To sell monetary gold at a higher price would be contrary to our obligations, as members of the Fund, directed to maintaining orderly currency arrangements.
§ Mr. StokesWill my hon. Friend explain what he means by "monetary gold"; will he also say why gold is sold in India at about £24 per fine ounce, whereas yesterday it was 118 rupees 15 annas per tola, which is about £23 5s. per fine ounce; and will he explain the difference between monetary gold and gold? Or is there something phoney about it?
§ Mr. JayWell, gold which is sold to monetary authorities, including the U.S. monetary authorities, is naturally classed as monetary gold. The price which the United States monetary authorities pay for gold is generally regarded as the ruling world price for gold.
§ Mr. W. FletcherWill the hon. Gentleman, in pursuance of this policy, not 2314 reconsider reopening the free gold market in Hong Kong?
§ Mr. StokesIs not my hon. Friend aware that, leaving out India as a restricted market, in many markets gold is sold at at least £17 per fine ounce? Why do we put up with this restriction? Why is it allowed to go on? Will he explain it to the House?
§ Mr. JayOf course, the price of gold in those markets to which my hon. Friend refers has no relevance to our obligations to the International Monetary Fund.
§ Mr. StokesWell, who made this phoney arrangement? Can I not have an answer? Why is it that the price is kept down?
§ Mr. JayOur adherence to the International Monetary Fund and the obligations involved was approved by this House.
§ Mr. StanleyIs it quite clear then that there is no question here of a "bankers' ramp"?