HC Deb 21 October 1952 vol 505 cc849-50
26. Mr. Stokes

asked the Chancellor of the Exchequer what representations he made at the recent meeting of the International Monetary Fund to obtain agreement to an advance in the price of monetary gold fixed at Bretton Woods to a figure more in keeping with the realities of today, in view of the fact that 75 per cent. of the gold of the world produced outside the Union of Soviet Socialist Republics is produced in the sterling area and that the present price affords an insufficient cushion on which to conduct world trade.

Mr. R. A. Butler

None, Sir; but speeches in favour of a higher monetary price for gold were made by the representatives of South Africa and Australia.

Mr. Stokes

Yes, I know that, but does that mean that the Government have no views on this subject? Is it not ridiculous that gold should maintain the same dollar value when the cost of production has gone up proportionately with the production of other things?

Mr. Butler

The main producers of gold, so far as we are concerned, are the two countries concerned, South Africa and Australia. Their case on this matter was put very eloquently, and I have nothing to add at this stage on behalf of Her Majesty's Government.

Mr. Stokes

But will the Chancellor give his mind to the latter part of the Question? How does he expect to continue to carry on international trade on a dollar-gold basis unless he allows the cushion to become large enough to take up the shocks?

Mr. Butler

That, of course, is a matter which requires a great deal of discussion, and is a matter upon which the American Secretary to the Treasury has already stated his opinion.

Mr. Stokes

I do not agree with it.

Mr. Butler

I dare say, but I have nothing to say on behalf of Her Majesty's Government at the present time.