§ 25. Mr. Cronin
asked the Chancellor of the Exchequer if he is aware that South Africa and other Commonwealth 1063 countries are now creating their own money markets instead of using London money market facilities and if he will take steps to enable the rates structure of the London market to compete more effectively.
§ Mr. P. Thorneycroft
I am aware that some Commonwealth countries are creating their own money markets. I welcome this since it should in due course increase the efficiency of their financial and monetary techniques.
§ Mr. Cronin
Is the right hon. Gentleman aware, however, that there is a considerable loss of valuable foreign exchange and, therefore, a deficit on the balance of payments as a result of these competing money markets?
§ Mr. Thorneycroft
It may be that in places they will fulfil a function previously discharged in London. At the same time, we must welcome advances of this kind in a Commonwealth country. Certainly there is no reason why we should be opposed to it.
§ Mr. Osborne
Is it not true that the London money market is falling in importance because we have not the money to lend and, if we keep spending more than we are earning, we must fall behind in the race among the international money lenders?