HC Deb 23 January 1969 vol 776 cc656-7
Q6. Mr. Biffen

asked the Prime Minister what proposals he has to initiate, with the President of the United States of America, a conference to establish new arrangements for settling international payments.

The Prime Minister

None, Sir.

Mr. Biffen

Is the Prime Minister aware that recent events have clearly demonstrated that the Bretton Woods system of fixed exchange rates is in need of substantial revision? Will he take this opportunity of expressing at least sympathy with those in this House who have been calling for a system of more flexible exchange rates?

The Prime Minister

I do not think that I have anything to add to what my right hon. Friend the Chancellor of the Exchequer said on this matter last November. Of course, after 20 years, as he said, Bretton Woods, which has served the world quite well, requires continuous amendment; and this has been going on through the proper mechanism of the I.M.F. and in other ways.

I do not think that it would be helpful to have a great world conference, itself creating instability, uncertainty and speculation, unless there was some certainty, as a result of previous preparation, about what that conference would decide. These things are better done through the established channels. This is not to be complacent about the present situation. Of course it needs modernisation; and this Government and our predecessors took the lead in trying to get some modernisation introduced into many of these questions.

Sir G. Nabarro

When discussing trade matters with the President, will the right hon. Gentleman bear in mind that any matter of international settlements must be linked with a further liberalisation of international trade? Will he press on the new President the fact that we desire—I think this is true of hon. Members in all parts of the House—a Nixon Round to follow the earlier and most successful Kennedy Round of tariff reductions?

The Prime Minister

That is a novel and helpful way of putting a thought that is, I am sure, in the minds of most hon. Members. We pressed the previous Administration in America to go further and faster in this matter and, indeed, to implement as fully as possible through Congress the agreements of the last Kennedy Round, many of which yet need to be implemented. I think that that should be the first priority.