§ 33. Mr. Bruce-Gardyneasked the Chancellor of the Exchequer what is the policy of Her Majesty's Government towards the recent proposal from the Italian Government that sterling balances might be converted into claims on the International Monetary Fund.
§ Mr. CallaghanA proposal was made in very general terms by Signor Colombo during the recent meeting of the International Monetary Fund as one of several courses which might be pursued in order to maintain the volume of international liquidity. I would certainly agree with Signor Colombo about the current need to maintain liquidity and the need to do so will form a central part of the forthcoming discussions in the Group of Ten and the I.M.F.
§ Mr. Bruce-GardyneCan the right hon. Gentleman be a little more forthcoming about this? Does not he agree that this proposal, which apparently provided for the repayment of any balances which might be handed to the I.M.F. over an indefinite period as surpluses were accrued by this country, is an attractive proposal from our point of view?
§ Mr. CallaghanI thought that my original Answer was designed to show that I was not ready to be forthcoming on this matter.