§ 24. Mr. Cronin
asked the Chancellor of the Exchequer if he will give an approximate estimate of the extent to which the balance of payments has been affected by the inflow of short-term funds in the first quarter of 1959 as compared with the last quarter of 1958.
§ Mr. Erroll
The first quarter's balance of payments figures are as yet only provisional, but the available information indicates that the movement of short-term funds in that quarter was much the same as in the preceding quarter if allowance is made for the arms purchase prepayment deposit by the Federal German authorities in March.
§ Mr. Cronin
Is it not the case that the apparently favourable state of the gold and dollar reserves is due largely to the inflow of these short-term funds and that they will also flow outwards with embarrassing rapidity at the first unfavourable turn of circumstances?