§ 15. Sir C. Osborneasked the Chancellor of the Exchequer by what percentage the terms of trade have moved in favour of Great Britain since October, 1964; by how many millions this has improved the balance of trade; which poorer countries mostly have suffered as a consequence; and what action he proposes to take to restore the wealth they have thus lost.
§ Mr. CallaghanOn the first question, about 6 per cent. before the recent devaluation; on the second and third questions I would refer the hon. Gentleman to the Answer which I gave to my hon. Friend the Member for Lewisham, West (Mr. Dickens) on 2nd November; on the fourth question, I would refer the hon. Gentleman to my speech at the Annual Meeting of the I.M.F. and I.B.R.D. at Rio on 26th September.
§ Sir C. OsborneWould the Chancellor come clean and tell the House what 6 per cent. means? Does it represent something like £300 million a year? Is not this an additional extravagance that has got to be cut out if we are to deal honestly with the poorer countries in the world?
§ Mr. CallaghanNo, it does not mean £300 million a year. That is why I cannot give an estimate. If the hon. Gentleman will refer to my previous Answer he will see that I said:
Prices of both imports and exports have risen, although export prices have risen more than import prices."—[OFFICIAL REPORT, 2nd November, 1967; Vol. 753, c. 13.]1119 One cannot make a precise estimate of the net effect on the balance of payments because it affects the importing propensities of the countries concerned and one cannot, therefore, make an estimate.