HC Deb 25 March 1958 vol 585 cc200-1
5. Mr. Roy Jenkins

asked the Chancellor of the Exchequer the figure for United Kingdom dollar payments, on account with the Organisation for European Economic Co-operation countries but not settled through the European Payments Union, for the second half of 1957; and if he will now say whether part of the growth in this item over the past three years is accounted for by giving support to the transferable sterling rate.

Mr. Amory

The figure will be published in the next balance of payments White Paper in a few days' time. Expenditure in support of the transferable rate is one of its components, but as I informed the hon. Member on 4th February the main cause of its increase since 1954 has been the merchanting of United States goods. This, however, has absorbed sterling, which would otherwise probably have cost the United Kingdom gold and dollars through other means.

Mr. Jenkins

Is not it now clear that it can be deduced from figures hidden away in these accounts and reluctantly explained by the Chancellor of the Exchequer that we are now paying an annual sum of over £200 million more in gold than in 1954, either to allow free commodity markets or to support the rate of transferable sterling? Is not this an almost intolerable burden? If, as must be the case, he knows it, ought not the Chancellor to give us the figure for the last half of 1957—which may show that it is costing still more—in order that we may see what is the up-to-date position?

Mr. Amory

We have to judge our net advantage very broadly in these matters, but I would ask the hon. Member to study the balance of payments White Paper when it comes out. No doubt we shall have an opportunity of debating these matters.

Mr. H. Wilson

When the Chancellor studies past copies of HANSARD, will he note that on 24th February, 1955, when the present Lord Privy Seal announced that this would be the method of supporting transferable sterling, we warned him that it would lead to very serious loss of gold and dollar reserves? Will the right hon. Gentleman frankly state to the House how much of the speculative drain on sterling last autumn was due to this factor? Will he tell us when he can expect the balance of payments White Paper and the Economic Survey?

Mr. Amory

I think the right hon. Member will agree that it has been an invariable practice never to give particular figures relating to exchange management. I would not agree with his general conclusion on this matter.