§ 3. Mr. Martenasked the Chancellor of the Exchequer if, in view of the French policy in the Common Market discussions he will make a statement about the rôle of sterling as a reserve currency.
§ The Chancellor of the Exchequer (Mr. James Callaghan)I have made it clear that I am ready to take part in constructive discussions about sterling's international rôle. I do not believe that any problem arises in this field which has to be solved before we could join the Common Market.
§ Mr. MartenNow that the French Government have made it absolutely clear that devaluation will not make it any easier for us to enter the Common Market, could the Chancellor go slightly further than that and categorically say that he will resist the French demand that we should abandon sterling as a reserve currency?
§ Mr. CallaghanThere can be no question of abandoning sterling as a reserve currency until arrangements are made which are satisfactory to those who hold sterling. There are two parties to this transaction, those who hold it and those 1109 who have put it on deposit here. If there are proposals that are to be made which can be discussed about sharing more widely the reserve rôle there is no difficulty on my part in joining any such discussions, but that needs other people who are ready to join in sharing the rôle.