§ 56. Mr. Osborneasked the Chancellor of the Exchequer if he is aware that the volume of manufactured exports rose last year by 16 per cent. and was 61 per cent. greater than in 1947, whereas the volume of retained imports of raw materials rose by five per cent. and 23 per cent. for the same years; and if he will make a statement on the desirability of reducing our gold reserves in order to build up our raw material reserves.
§ Mr. GaitskellYes, Sir. But changes in the volume of our imports of raw materials are, of course, not necessarily associated with changes in the volume of exports of manufactured goods. In any case, it would be quite wrong to conclude that the comparatively low level of raw material imports into the United Kingdom played any substantial part in increasing the gold and dollar reserves of the sterling area. Any dollars required are already provided for the import of essential raw materials.
§ Mr. OsborneWould not the Chancellor agree that it is extremely foolish to allow the national stocks of raw materials and foodstuffs to fall at a time when world prices are rising?
§ Mr. GaitskellThat, of course, is not implied in the least in my answer. We are, in fact, buying raw materials for stockpiling purposes as and when we can, and shortage of dollars is not allowed to interfere in that.
§ Mr. OsborneIf it is not shortage of dollars which is preventing us from replenishing our stocks of raw materials and foodstuffs, what on earth is it?
§ Mr. GaitskellIt is a shortage of physical supplies.