§ 31. Mr. Bruce-Gardyneasked the Chancellor of the Exchequer what study he has given to seeking agreement on invocation of the International Monetary Fund scarce currency rules against the Deutsche Mark.
§ Mr. Roy JenkinsI do not consider that such an agreement would be practicable or desirable.
§ Mr. Bruce-GardyneWould the right hon. Gentleman not agree that the disciplines of the International Monetary Fund should work in both directions? Is it not a fact that Germany looks like running a very dangerous balance of payments surplus this year, and would not an awareness of the existence of a scarce currency clause in the International Monetary Fund act as a spur to the German Government?
§ Mr. JenkinsThere is a real problem arising out of big and persistent surplus countries. This clause was drafted in 1944 but never used, and it is generally regarded as having fallen into desuetude. I am not convinced that to try and invoke it now would be a useful step for me to take.