§ 29. Mr. C. Osborneasked the Chancellor of the Exchequer what negotiations he has had with the United States Government concerning co-operation in order to secure greater uniformity in the interest rates applicable to the United States of America and Europe; how soon London rates will be reduced to the United States level; and if he will make a statement.
§ Mr. BarberMy hon. Friend will not expect me to make any statement about interest rates in the future. My right hon. and learned Friend emphasised in his speech on 6th February the importance which he attached to maintaining close contact with the United States Administration on financial and economic matters.
§ Mr. OsborneSince the American Government obviously want interest rates to be brought down, not only in their country but in this country, and since the export trade of the world is conducted either in dollars or sterling, surely it is in the interests of the world's export industry that we should have uniformity in these interest rates—and low interest 613 rates? As a corollary, since high interest rates undoubtedly have evil social consequences at home, do not we want to reduce them as soon as we can?
§ Mr. BarberI appreciate my hon. Friend's point in asking this Question but it has, after all, long been recognised that Ministers do not speculate in this House on possible changes in interest rates.