§ 39. Viscount Hinchingbrookeasked 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. BrookeThere 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 HinchingbrookeIs 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. BrookeMy 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. JayWill 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. BrookeI am sure the right hon. Gentleman is aware of the conditions which my right hon. Friend said must be fulfilled.
§ Viscount HinchingbrookeIn view of the unsatisfactory nature of the reply, I beg to give notice that I will raise this important subject on the Adjournment.