§ 27. Mr. Winnickasked the Chancellor of the Exchequer whether he will introduce legislation to enable Her Majesty's Government to take action against those British companies which sold sterling in large quantities earlier this year and thus created the run on the £ sterling.
§ Mr. CallaghanNo, Sir.
§ Mr. WinnickIs it not a fact that it was British companies which in the main sold hundreds of millions of £s earlier this year and not so much Continental firms'? Would not my right hon. Friend agree that at a time when British workers are refused wage increases because of the national interest they should know that there are numerous British banking firms which sold Britain short a few months ago?
§ Mr. CallaghanNo, that is not my information. United Kingdom residents cannot indulge in outright speculation. Their spot transactions are strictly limited by exchange control. They are allowed to buy or sell forward only in order to cover general trading or commercial transactions. [Interruption.] I would get on much better without your help.
§ Mr. SpeakerOrder. I am not trying to help the right hon. Gentleman.
§ Mr. CallaghanYou are invaluable, Sir.
I have had a careful examination made into this, and, although there have been strong reports to the contrary in the newspapers, it is not my information that this selling took place to any large extent by British residents. [Interruption.] My hon. Friend may not agree, but I have examined the facts; I am not aware that he has. We do not get anywhere by pursuing will o' the wisps which do not exist.