HC Deb 12 July 1966 vol 731 cc1211-2
40. Mr. Turton

asked the Chancellor of the Exchequer whether he will make a statement on the effect of his guidance to investors against investment in the more developed countries of the sterling area.

Mr. Callaghan

The Voluntary Programme has an important part to play in our task of putting our balance of payments right. This is recognised both by the countries affected and by those firms and institutions whose co-operation in the Programme has been sought. Al- though a few replies are still awaited, company chairmen have in general offered their co-operation in the Programme.

Mr. Turton

As the Chancellor today admitted that the interchange of knowledge through investment is valuable to all concerned, and as a likely effect of this proposal is to damage our exports, particularly to Australia, will the right hon. Gentleman take the opportunity of the presence of the Prime Minister of Australia to revise this suicidal policy?

Mr. Callaghan

I have had the advantage of discussions with the Prime Minister of Australia and I have been able to investigate the effect which this is having upon investment in Australia. I am satisfied that no damage is being done to either country.