§ 23. Mr. Ridleyasked the Chancellor of the Exchequer how much foreign currency has already been borrowed by the nationalised industries; and how much he expects to be borrowed by the end of 1969.
§ Mr. DiamondB.O.A.C. has outstanding about £21 million of foreign currency debt, almost all U.S. dollars, the Gas Council is borrowing about £30 million in Deutschemarks and B.E.A. has borrowed about £7 million in Swiss francs. I hope that further foreign borrowing by nationalised industries will be possible during the rest of this year, but it is not possible to estimate the amount.
§ Mr. RidleyIf the Government insist on plunging the country deeper into foreign debt by means of borrowing through the Trojan Horse of the nationalised industries, will they at least avoid borrowing in West Germany, in view of the Chancellor's known feeling that the Deutschemark should be revalued upwards, thereby causing us grievous loss?
§ Mr. DiamondThe hon. Gentleman is, I am afraid, mistaken. The borrowing will not result in an increase in net United Kingdom overseas indebtness.
§ Mr. EmeryDoes the Minister realise that there has to be a Government guarantee for a very considerable part of this foreign indebtness, and should not it be recorded as Government foreign indebtedness and not just hidden away as indebtedness to the nationalised industries?
§ Mr. DiamondThere is no question of hiding away; I have given the figures to the hon. Gentleman.
§ Mr. HigginsWill the right hon. Gentleman clarify his answer to the Question asked him by my hon. Friend the Member for Cirencester and Tewkesbury (Mr. Ridley)? Would there be an increase in indebtedness in terms of sterling if there were a revaluation upwards of the Deutschemark?
§ Mr. DiamondThat speaks for itself.