HC Deb 28 March 1957 vol 567 cc1334-5
34. Mr. Vane

asked the Chancellor of the Exchequer whether he is satisfied that our position as banker for the sterling area is not being weakened as a result of his refusal to consider reductions in dollar expenditure for less essential commodities in order to allow us to pay for our large oil imports from dollar countries without making further inroads in our already limited gold and dollar reserves; and if he will make a statement.

Mr. Birch

The strength of our position as banker to the sterling area depends much more upon our overall balance of payments than on our direct balance with the dollar area. The Government believe that the right course is to meet additional dollar expenditure on oil from the proceeds of the general increase in exports which it is its policy to encourage.

Mr. Vane

Is not this capitulation of my right hon. Friend to free trade and Liberalism almost too complete, and would it not be a good thing if, for example, we could limit the imports of Coca-Cola, to which reference has been made, in order that we could pay in part for this additional essential oil?

Mr. Birch

Questions about Coca-Cola should be directed to the Board of Trade.

Mr. Stokes

To the Minister of Health.

Mr. H. Wilson

Is the right hon. Gentleman not aware of the significant and very large increase over the last three years in imports into this country of, on the whole, inessential American manufactured goods, and, in view of the very serious position for the future of the sterling area now, does he not agree that the most important thing to be done to save the sterling area and Commonwealth economic relations is for this country to invest more in the sterling area, particularly in dollar-saving production?

Mr. Birch

That, of course, is a much wider question. There is, obviously, great force in what the right hon. Gentleman says.