§ 12. Mr. Croninasked the Chancellor of the Exchequer if, in view of the difficulty experienced by sterling area buyers of capital goods from the United Kingdom in satisfying their credit needs, as a consequence of present monetary policy, he will consider measures to enable banks to provide the necessary medium-term and long-term export credits without seriously impairing the relative liquidity of their assets.
§ Mr. P. ThorneycroftNo, Sir. I assume that what the hon. Member has in mind is that Her Majesty's Government should stand ready to take over such credits, and this I am not prepared to undertake.
§ Mr. CroninDoes the right hon. Gentleman appreciate that many leading industrial countries are offering generous credit facilities and that, therefore, the quantity of capital goods exported from this country depends to a large extent on the amount of credit available at the banks? Would he consider, therefore, making an arrangement for the Bank of England to rediscount paper arising from the British banks' export credit transactions?
§ Mr. ThorneycroftI do not think that we can attempt to achieve that end by rendering the banks immune from the effects of lending on their liquidity ratios. I do not think that that would be a sensible arrangement.
Mr. H. WilsonIn view of the recent worsening of British competitiveness in this respect, and in view of the fact that some banks have been lending on longer terms than usual, and seem now to be having second thoughts, would the right hon. Gentleman say whether the new committee of inquiry under Lord Radcliffe will have within its terms of reference the question of the provision of long-term credit facilities?
§ Mr. ThorneycroftI think that that would certainly fall within the terms of reference of the Radcliffe Committee.