§ 39. Mr. Osborneasked the Chancellor of the Exchequer what steps he is taking to ensure that British exporters to Chile are not penalised by exchange-rate variations, as suggested in the correspondence sent to him.
§ Mr. MaudlingThe reason for the present sterling-peso rate in Chile is that Chile is very short of sterling. Chile has now begun to sell copper to the United Kingdom for sterling, and this should improve prospects for United Kingdom sales to this market.
§ Mr. OsborneIn view of the fact that between the American dollar and the peso there are six different rates, which can be used to help American exporters of American goods to Chile, and since they get a much greater depreciation allowance than British exporters, will my hon. Friend see what he can do to help us, because otherwise we shall be driven to do what the Germans have done on a barter basis. Is he aware that there is much heavy industrial equipment waiting to be exported to Chile if we could only get the right rate?
§ Mr. MaudlingThe Government are very anxious that British exports to Chile should be increased, but the fact is that there is a free exchange market in Chile, and Chile happens to be shorter of sterling than of dollars, and that is reflected in the sterling-dollar rates. We hope Chile will begin to earn more sterling through the exports of copper to the United Kingdom, and that naturally will be reflected in the free market quotations of sterling.