§ 30. Sir J. Mellorasked the Chancellor of the Exchequer why he has continued the prohibition of re-investment of proceeds of sale of non-resident owned sterling securities in securities redeemable earlier than 10 years from the date of purchase.
§ Mr. GaitskellBecause otherwise the consequent transfer of capital might impose a heavier drain on our foreign exchange resources than we can countenance at present.
§ Sir J. MellorWhat difference does it make, from the point of view of exchange control, whether this money goes to longdated or short-dated securities?
§ Mr. GaitskellBecause the proceeds of a maturing loan are freely transferable.