§ 43. Mr. Jayasked the Chancellor of the Exchequer what steps he is taking to discourage commodity shunting operations, based on transferable sterling, which may threaten the sterling area's gold and dollar reserve.
§ Mr. R. A. ButlerI keep a close watch on this.
§ Mr. JayIn view of the weakness in the sterling area recently, and the decline in gold reserves since last summer, does not the Chancellor consider that he is taking the matter rather lightly?
§ Mr. ButlerNo, Sir. I am not taking it lightly at all. It is clear that there is a certain degree of this going on. That is why I said that I am keeping a close watch on it.
§ Mr. GaitskellCan the right hon. Gentleman give the House any idea of the extent of the leakage?
§ Mr. ButlerI do not think that it is so exaggerated as some people make out. It has results only outside the sterling area and has no relation to our direct exports to the dollar area. It is mostly concerned with European and Continental and other foreign operators, so that it is strictly limited to that area. But there is a certain degree of it going on.