HC Deb 18 October 1966 vol 734 cc17-8
20. Mr. Dickens

asked the Chancellor of the Exchequer what proposals he has for liquidating the United Kingdom's overseas portfolio investments.

Mr. Callaghan

It is not the practice to reveal Her Majesty's Government's intentions with regard to the Treasury portfolio of dollar securities.

Mr. Dickens

Does not the Chancellor agree that the first requirement is to remove ourselves from the influence of international creditors and resume economic expansion? Is he aware that the quickest way in which this can be done without deflation is to liquidate our overseas portfolio investments and compensate the holders at fair prices currently obtainable on open markets abroad?

Mr. Callaghan

This is a subject that needs debate rather than question and answer, and I somehow think that as my hon. Friend has presented it he was dealing with a difficult subject in rather too simplified a manner.

Sir G. Nabarro

Does the right hon. Gentleman agree that the United Kingdom's portfolio of investment overseas is probably about £12,000 million, which should only be liquidated for our immediate financial position in case of dire need and urgency, and is a major line of defence for the strength of sterling all over the world?

Mr. Callaghan

I do not think that there is any need to liquidate the £12,000 million——

Sir G. Nabarro

Or any part of it.

Mr. Callaghan

—or any part of it at present. I am glad to find myself in agreement with the hon. Gentleman at least on this occasion. As for our general position, it is important that we should be as liquid as possible, and this I am trying to secure.