§ 8. Mr. Croninasked the Chancellor of the Exchequer if he will now reinforce the control of capital movements to non-sterling countries and introduce controls on capital movements to the sterling area.
§ Mr. CroninDoes not the right hon. Gentleman appreciate that, since the Government relaxed controls, the balance of trade surpluses earned by this country have been cancelled out year after year by capital movements, mostly of a fugitive or speculative nature? Has not the time come for the Chancellor of the Exchequer to overcome his party mania and face the situation squarely?
§ Mr. BirchI think the experience of hon. and right hon. Members opposite when they were in office showed that the £ cannot be protected simply by controls of that sort. It is the general confidence in the policy of the Government which holds it up. The only thing we have done recently on exchange control has been to close the Kuwait gap. There has been no basic change.
§ Mr. CroninAre there not a Hong Kong gap and a Tangier gap through which large amounts of capital escape?