§ 4. Mr. Croninasked the Chancellor of the Echequer if he will give an assurance that Her Majesty's Government will maintain the present exchange rate of the £ sterling.
§ Mr. Selwyn LloydYes, Sir.
§ Mr. CroninWhile both sides of the House are very glad to have the right hon. and learned Gentleman's categorical assurance that under no circumstances will he devalue the £, is he aware that there is, nevertheless, widespread dismay at the complete lack of a coherent policy to deal with the very grave balance of payments situation? Does he realise that there is a widespread feeling, as a result of events of the last few months, that the Government are morally and mentally bankrupt?
§ Mr. LloydI do not think that that supplementary question arises out of the answer I gave, though I realise how carefully the hon. Gentleman has prepared it. But, as I have already indicated, there are a great many problems, including the question of long-term imbalance, which affects not only us but the United States also as a deficit country, that we have to seek to get right with financially balanced countries. Discussions are going on with regard to that. I have given a categorical assurance about devaluation. I am glad that the hon. Gentleman welcomed that fact.
Mr. H. WilsonIn view of the utter dependence of sterling at the moment on this tremendous volume of hot money, will the right hon. and learned Gentleman agree about the absolute necessity of his saying what he has said today, of repeating it, meaning it and carrying out policies designed to make it effective?