§ 29. Mr. Croninasked the Chancellor of the Exchequer if he will put in hand arrangements to enable paper arising from long-term capital goods export transactions carrying Export Credit Guarantee Department insurance to be discounted at the Bank of England.
§ Mr. MaudlingNo, Sir. My right hon. Friend said in his Budget speech of 15th April that
there is no need in present circumstances to make any substantial change in the terms or period of insurance cover."—[OFFICIAL REPORT, 15th April, 1958; Vol. 586, c. 56.]given by the Export Credits Guarantee Department.
§ Mr. CroninIs the right hon. Gentleman aware that financial institutions are very reluctant to advance money for long term transactions such as this and that this suggestion would considerably help the export market?
§ Mr. MaudlingOnce again I would not agree with that assumption. My right hon. Friend made it clear that it might be necessary to consider the position of guarantees and finance over longer periods than at present if the level of world trade begins to fall. We must beware of getting into a race for extending the limits of credit.