HC Deb 18 October 1966 vol 734 cc13-4
16. Mr. Roebuck

asked the Chancellor of the Exchequer whether he is satisfied that the Bank of England exercises adequate control over the remittance of sterling for overseas investment, having regard to the £403,000 remitted by Sempah Holdings to Switzerland; and whether he will make a statement.

The Chancellor of the Exchequer (Mr. James Callaghan)

Yes, Sir. As regards Sempah Holdings inquiries are at present being carried out by the police and I have no statement to make.

Mr. Roebuck

Leaving aside that question, would not my right hon. Friend agree that this transaction was not in the interests of the nation as a whole, and has he in the course of this inquiry come across similar cases in which large sums of sterling have been remitted abroad, and if so will he give the names of the companies concerned to the House?

Mr. Callaghan

These transactions which are alleged to have been improperly conducted—and I use the word "alleged" because they are the subject of police investigations at the moment—can be made legal in certain circumstances if investment currency is used and the securities so secured are placed in the possession of authorised depositors. My general information is that this is the normal proceeding, but there are cases where it need not happen.

Mr. Grant

Can the right hon. Gentleman say what pressure has been brought to bear on the Swiss authorities in Zurich and Geneva to try to trace the missing £210,000 belonging to Sempah which has disappeared?

Mr. Callaghan

That seems to be a separate question to which I could not give an answer.