§ 17. Sir I. Fraserasked the Chancellor of the Exchequer the latest position regarding overseas balance of payments.
§ The Chancellor of the Exchequer (Mr. R. A. Butler)The latest information on the balance of payments was given in the usual monthly announcement on the gold and dollar reserves, which was published on 2nd October.
§ Sir I. FraserCan my right hon. Friend say whether the marked improvement which he has been able to show—and on which I for one would like to congratulate him—brings nearer the time when the £ may be freed on the exchanges, a course which has been recommended by high authorities?
§ Mr. ButlerThe objective which the hon. Member has mentioned is no doubt a laudible one, but it is important to proceed by degrees towards it. I am very glad to be able to state that the improvement we showed in the balance of payments is already a step in the right direction.
§ Mr. GaitskellCan the Chancellor tell us how much the improvement in the United Kingdom balance of payments position is due to changes in the import and export prices, and how much it is due to the decline in the volume of imports associated with the fall in production?
§ Mr. ButlerPart of it, as I have endeavoured to explain in public statements, is due to an improvement in the terms of trade in our favour. I regret that the balance of payments situation is not better by an improvement in the export position, towards which the country should certainly devote its attention in the future if we are not only 9 to maintain our position but effect a lasting improvement. I have never exaggerated the success we have achieved, but it is gratifying that with the sterling area we are now in balance with a small surplus, excluding American aid, but we have a long way still to go.
§ Mr. GaitskellWould the Chancellor be good enough to publish the figures showing exactly how much the improvement is due to a change in the terms of trade and how much to other factors, and what they are?
§ Mr. ButlerI can hardly publish more figures than are in the balance of payments papers, but I will certainly keep up the level of publishing figures established by precedent. The right hon. Gentleman may feel assured that if I see any opportunity of publishing figures which explain the situation to the public I shall do so, as that is the one thing I desire.
§ Mr. GaitskellI can assure the right hon. Gentleman that I am genuinely seeking information and I should be grateful, as it would save us on this side of the House the labour of calculation, if he would publish the figures I have asked for.