HC Deb 19 June 1956 vol 554 cc1218-9
19. Mr. F. M. Bennett

asked the Chancellor of the Exchequer the total dollar allocation for United Kingdom private investment in Canada in 1955; and what increase is under consideration for the current year.

Mr. H. Macmillan

There is no fixed allocation; our policy is to provide dollars, within the limits of our resources, for direct investment in Canada which will benefit the United Kingdom economy. The amounts authorised were £32 million in 1955 and £18 million in the first five months of 1956.

Mr. Bennett

Whilst agreeing with the Chancellor's early remarks that, for the reasons he has given, it would be wrong to earmark any specific sum of dollars arising from a recent oil deal, may I ask my right hon. Friend if he would not agree that this does give a splendid opportunity vastly to increase investment in Canada without in any way encroaching on our capital reserves? Is he further aware that many of us on this side of the House welcome this deal only on the assurance that something on those lines will follow?

Mr. Macmillan

I want to make two things clear. There is no preconceived ceiling or allocation, and if, as I hope, suitable proposals for investment come along, the result of this increase, or an increase in the reserves, will make it easier to agree to those proposals.

Mr. Woodburn

Is the Chancellor aware that there is an opportunity for tremendous development, in addition to oil, between Montreal and Quebec, in connection with the Labrador iron scheme? Is he aware that it provides an opportunity for making an agreement which would give this country and Canada an equal opportunity for the harmonious and mutual exchange of iron and other products, and that opportunity would come from investment at this moment, and might be lost forever if not taken advantage of now?

Mr. Macmillan

Yes, Sir. All these things are relevant, and I repeat that the country can invest only what it saves, and that is what we were engaged in debating yesterday.

Hon. Members

Resign.