HC Deb 17 July 1956 vol 556 cc1030-1
39. Viscount Hinchingbrooke

asked the Chancellor of the Exchequer whether he will make a statement on the development of policy towards sterling convertibility and a free exchange rate since September, 1955.

Mr. H. Brooke

There has been no change whatever in the policy of Her Majesty's Government towards sterling convertibility or the maintenance of our exchange parity of $2.80 to the £1.

Viscount Hinchingbrooke

Is my right hon. Friend aware that, when sterling was converted in December, 1946, at a false rate of4 dollars and 3 cents to the £, it led to our subsequent undoing? Is he further aware that there are various rates in force today and it is necessary to bring them together by freeing the £ before sterling convertibility is resorted to, otherwise there might be other disasters, and would he make a statement in due course?

Mr. Brooke

My right hon. Friend the Lord Privy Seal, when he was Chancellor, made a firm statement at Istanbul in September, 1955. I have nothing to add to that.

Mr. Jay

Will the Financial Secretary assure the House that the Government intend to build up much larger gold and dollar reserves before making a rash experiment of this kind?

Mr. Brooke

I am sure the right hon. Gentleman is aware of the conditions which my right hon. Friend said must be fulfilled.

Viscount Hinchingbrooke

In view of the unsatisfactory nature of the reply, I beg to give notice that I will raise this important subject on the Adjournment.