HC Deb 28 March 1957 vol 567 cc1333-4
33. Mr. Gordon Walker

asked the Chancellor of the Exchequer if he will make a statement concerning the rights of the German Federal Government to with draw the £ 75 million deposited under the agreement of 2nd March by the Bank Deutscher Laender with the Bank of England.

Mr. Birch

The arrangements made, while providing that under certain circumstances withdrawals may take place, ensure that these shall occur only in conditions agreeable to Her Majesty's Government.

Mr. Gordon Walker

Could the right hon. Gentleman say simply whether this £ 75 million is under our control or under the control of the German Government? I could not really follow it from his Answer. Further, can he say whether the nature of this and similar unusual additions to our gold and dollar reserves will be made clear when the figures are published?

Mr. Birch

On the question whether it is ours or theirs, the position is, as the right hon. Gentleman knows, that the German Government owes us £ 120 million. This is a deposit against the annual payments of £ 7½ million which they are due to make. It is a deposit, and, therefore, does not belong to us. On the other hand, the arrangement is that it will not be withdrawn in conditions which are not agreeable to us. As regards the showing of special receipts, I should like to examine that; of course, all these matters will come out in the White Paper on the Balance of Payments, and, no doubt, notifications will be made as and when it is received.