§ 38. Mr. Alisonasked the Chancellor of the Exchequer to what extent he estimates that the reduction or elimination 1273 of his borrowing requirement this financial year and next will correspondingly obviate the need to finance Government expenditure by borrowing overseas or running down gold and currency reserves.
§ Mr. Harold LeverThis Question seems to rest on a false premise. The amount of finance accruing to, or provided by, the Government as a result of external transactions reflects mainly the balance of payments and flows of foreign exchange, and is not directly connected with the size of the central Government's borrowing requirement or surplus.
§ Mr. AlisonWill the Financial Secretary recognise, nevertheless, that overseas borrowing and dipping into the currency and gold reserves has played a substantial part in meeting the Government's financial needs in the last four or five years? Will he also recognise that this sort of dipping into the reserves is increasing the burden of our overseas deficit and cannot go on?
§ Mr. LeverThat supplementary question is not directly related to the Question and is only a partial comment on a very complex overall situation.