HC Deb 22 June 1965 vol 714 cc1447-8
11. Sir C. Osborne

asked the Chancellor of the Exchequer, in view of the fact that the industrial investment boom may ease off by the end of the year, what new steps are being taken to meet the economic setback which will result; and if he will make a statement.

Mr. Callaghan

I explained in my Budget speech the need to make room in the economy for the progressive improvement in the balance of payments which is our overriding immediate objective. The measures I have taken can of course be modified at any time, one way or the other, by adjustment of fiscal and monetary policy.

Sir C. Osborne

If the improvement in our position is satisfactory to the Chancellor of the Exchequer, which we all hope it will be, why is he going to America to try to borrow a further 2 billion dollars to help stabilise sterling this autumn? Is such a large extra loan necessary if our position is improving?

Mr. Callaghan

The hon. Member is a very useful means of denying this foolish rumour for which he has no authority. I am going to Washington, as has already been announced, to discuss further progress with international liquidity. That was the original purpose of the visit, and it is still the main purpose of the visit.

Mr. Lipton

Do not the constant moanings of the hon. Member for Louth (Sir C. Osborne) exercise a depressing effect on our foreign balance of trade?

Mr. Speaker

I am inclined to think that that must be a matter of opinion.