38. Mr. Gresham Cooke
asked the Chancellor of the Exchequer, in view of the recent rise in the investment dollar premium to over 16 per cent., and of the fact that it is damaging to the £ to have such a high premium quoted for switching to a foreign currency security, what action he will take to control any further increase in this premium.
Mr. Gresham Cooke
Is the Chancellor aware that the rise in premiums against the £ is preventing investors from investing money if they wish in America, and not only that, but is showing up the falling value of the £ on world markets? Should not this premium be controlled in the national interest?
§ Mr. Callaghan
The second part of the hon. Gentleman's statement is not true. He knows that the value of the £ in the exchange markets stands higher today than it has stood for two years, and that what happens on a thin market like this bears no relationship to the value of the £.