§ 7. Mr. Osborneasked the Chancellor of the Exchequer what prior consultation was held by the International Monetary Fund with Her Majesty's Government as a member of the Fund before including in a recent official report an indication that Britain was gradually approaching the position where it could join the general move towards full currency convertibility; and if he will make a statement on the position.
§ Mr. P. ThorneycroftI assume my hon. Friend is referring to the Eighth Annual Report on Exchange Restrictions. This was approved by Her Majesty's Government and, in my view, presents a useful summary of the present position. Progress has been made and continues to be made by the United Kingdom in the liberalisation of trade and payments. On the pre-conditions for sterling convertibility, I have nothing to add to the statements made by my predecessors.
§ Mr. OsborneCan the Chancellor say whether there is any truth in the statement that we are nearer to convertibility than, say, twelve months ago?
§ Mr. ThorneycroftI think my hon. Friend reads a rather romantic connotation into this. It was put on a rather pedestrian level.
Mr. H. WilsonWill the Chancellor be warned by the grim fate of the Lord Privy Seal two years ago this month, when some apparently careless remarks made by him in Paris led to a very serious run against sterling? Will he make plain that he intends no change in the exchange rate of sterling, or has he any intention of moving further towards dollar convertibility?
§ Mr. ThorneycroftI think I have made it plain that I have nothing to add to the statement concerning the pre-conditions for convertibility.