HC Deb 11 December 1956 vol 562 cc211-2
30. Mr. H. Wilson

asked the Chancellor of the Exchequer the total loss, over the months August to November, of gold and dollars, net of the proceeds of the sale of Trinidad assets; and the proportion which these represent of the gold and dollar reserves at the beginning of that four-month period.

Mr. Walker-Smith

The figures are: 616 million dollars and 26 per cent. It is, of course, precisely because these are large totals that steps have been taken at home and abroad to strengthen our position.

Mr. Wilson

But does not the hon. and learned Gentleman recall the very critical comments made by the Chancellor on 17th February about the fact that our gold and dollar reserves for the whole of 1955 fell by about 25 per cent.? Is he not aware that a fall of 26 per cent. in four months is extremely serious, and will not be covered merely by borrowing more money from other people?

Mr. Walker-Smith

I do not know about the last part of the right hon. Gentleman's supplementary question, but he will appreciate that the drawings and the standby from the International Monetary Fund are, in total, just about twice the figure of the losses of reserves in the last four months.

Mr. Nabarro

In view of the remarkably fine export figures for October and November, can my hon. and learned Friend say to what extent these losses of gold and dollars are attributable to speculative elements, and to what extent they may be attributable to trading deficits or surpluses.

Mr. Walker-Smith

I think that my right hon. Friend made it clear in his statement last week that they were not attributable to any defects in our trading position. My hon. Friend may have observed that that is confirmed by what Mr. Jacobssen is reported this morning as saying.

Mr. Wilson

While imports were bound to be severely reduced in November by lack of shipping, as we were previously informed by the Government, is it not a fact that, in addition to the speculative element mentioned by the hon. Member for Kidderminster (Mr. Nabarro), there must have been a pretty substantial leakage of capital movements from the sterling area to the outside world? How far, in the view of the hon. and learned Member, is this due to the most regrettable weakening in the exchange control defences of the pound over the last two or three years.

Mr. Walker-Smith

I think that the right hon. Gentleman is now seeking an answer to which he is not entitled at this time.