HC Deb 22 November 1949 vol 470 c196
47. Colonel Crosthwaite-Eyre

asked the Chancellor of the Exchequer what action is being taken to reduce the dollar drain incurred by this country resulting from agreements in force governing the Bi-zone of Germany.

Sir S. Cripps

Contrary to expectation the sterling area was so far in deficit with the Trizone during the third quarter of this year that we had to make a settlement of 7 million dollars in October. We have since, in conjunction with the German authorities, been looking into the causes of this deficit. Should trade, following this review, take the course which we both expected earlier on, we shall not have to make any further dollar settlements.

There is a further liability on His Majesty's Government, under the Revised Fusion Agreement of December, 1947, to convert into dollars, in certain circumstances, sterling held by the Trizone in a separate account. This matter, with others, is now being discussed with the U.S. Government.

Colonel Crosthwaite-Eyre

Could the Chancellor say whether in fact he anticipates that any further drain will occur?

Sir S. Cripps

I cannot say with any definiteness, obviously, in view of what has happened in Europe lately, but I hope that no further drain will occur.