International Liquidity

HC Deb 22 June 1965 vol 714 cc1448-50

14. Mr. Hordern

asked the Chancellor of the Exchequer what proposals he intends to put forward for improving international liquidity at the International Monetary Fund meeting next September.

20. Mr. Bruce-Gardyne

asked the Chancellor of the Exchequer what was the outcome of his discussions with the French Minister of Finance about international liquidity.

25. Mr. Walters

asked the Chancellor of the Exchequer what talks he has held with the French Government on problems of world liquidity; and what has been their outcome.

Mr. Callaghan

I had a useful exchange of views with the French Finance Minister last week, and international discussions continue in the Group of Ten and the International Monetary Fund. Progress can only be made by agreement, and I hope to continue discussions with the United States Secretary to the Treasury next week.

Mr. Hordern

Will the right hon. Gentleman see that on his forthcoming visit to Washington this matter has first priority and is not a subject which will be put rather low down on the agenda? Will he see whether it is possible to work out some form of joint agreement with the Americans on this problem as a joint approach?

Mr. Callaghan

I hoped that I had already made it clear, and I make it clear again, that this is the main subject of discussion next week and is a follow-up of discussions which we have already had. But I emphasise that there is not a lot of point in two or three nations agreeing on what they would like to do. There must be a unanimous move forward if there is to be an increase in liquidity or a reconstruction of the world monetary system. This is why my purpose is not to take up a fixed position or to put forward a grand new plan, of which there are at least a dozen in existence, but to try and see whether the various different elements which exist at present can be brought together and synthesised.

Mr. Walters

I welcome the Chancellor's talks with the French Finance Minister but may one assume that, in his forthcoming talks in Washington, he will tend to support the French position?

Mr. Callaghan

No, Sir; it would be wrong for me to say that. The principle upon which this country has acted is one which I would propose to continue, namely, to build upon the International Monetary Fund in the first place. That is where we should start from.

Mr. Heath

When the Chancellor returns from Washington, will he take an early opportunity to inform the House, either by statement or by White Paper, exactly where the Government themselves stand after this series of meetings on the question of arrangements for international liquidity? Does the Chancellor realise that there is a Bill at present before the House which is very much concerned with these matters and which remains to be debated, but it will not be possible for the House to debate it adequately unless we have much more knowledge about the Government's own position?

Mr. Callaghan

I shall consider that. It is no use publishing a White Paper unless there is a good deal to say, but I shall certainly consider either making a statement or in some other way indicating the position reached in international discussions as well as Her Majesty's Government's own position.

Mr. Sheldon

While accepting that unanimity is certainly the most desirable goal to attain, will my right hon. Friend not agree that, in the event of failure to reach such unanimity, encouragement of a large number of bilateral swap arrangements could be second or third best?

Mr. Callaghan

Bilateral swap arrangements have had a very useful part to play, but I want to see arrangements for increasing liquidity put upon a more permanent basis, if that is possible.