HC Deb 29 November 1949 vol 470 cc944-5
45. Colonel Crosthwaite-Eyre

asked the Chancellor of the Exchequer what action has been taken by His Majesty's Government to ensure that transferable or convertible sterling is not disposed of at rates less than the official parity of sterling with the dollar.

58. Mr. William Wells

asked the Chancellor of the Exchequer what is the extent of dealings in sterling below the official rate of exchange; and how far the maintenance of the official rate is being endangered thereby.

Sir S. Cripps

The devaluation of sterling has taken much of the profit out of cheap sterling transactions. Although precise estimates cannot be given, I have no reason to believe that such transactions are now being effected on a significant scale. Nevertheless, as long as sterling is not fully convertible, transactions of this nature cannot be entirely eliminated, and a close watch is being kept on the position. The precautionary measures which were taken before devaluation are being continued, and they will, if necessary, be further strengthened.

Colonel Crosthwaite-Eyre

Is the Chancellor aware that this type of sterling is now being dealt with in New York at some 30 cents discount, and does he consider that this fact does not require immediate action? If he does, may I ask him what kind of action His Majesty's Government are taking?

Sir S. Cripps

I do not agree with the statement made by the hon. and gallant Gentleman, and if it were so, I should not disclose to the people who are so speculating the steps which we propose to take.

Colonel Crosthwaite-Eyre

I quite agree, but will the right hon. and learned Gentleman assure the House that he is taking steps?

Sir S. Cripps

I have given the assurance in the answer to the Question.

Mr. Walter Fletcher

Is not the Chancellor aware that the use or abuse of this sterling by non-sterling bloc nationals is again beginning to divert commodities from the sterling group to the dollar countries and is leading to a considerable loss of dollars.

Sir S. Cripps

I am not aware that this is happening on any significant scale.