HC Deb 04 March 1969 vol 779 cc199-200
17. Mr. Bruce-Gardyne

asked the Chancellor of the Exchequer what is the new total amount of capital and interest, respectively, due to be paid in 1969 on outstanding foreign loans to the United Kingdom Government, including drawings from the International Monetary Fund; and how he plans to finance these payments.

Mr. Roy Jenkins

rose—

Sir A. V. Harvey

On a point of order. Question No. 66 is almost identical to this Question. Would there not be a saving of time to the House if the Chancellor answered them both together?

Mr. Speaker

That is a matter for the Minister, not for the Chair.

Mr. Jenkins

The answer to the Question is: the amounts of capital and interest still to be paid this year on outstanding foreign loans to Her Majesty's Government, including drawings from the I.M.F., are £421 million and £78.5 million respectively. As to the second part of the Question, I have nothing to add to the Answer I gave the hon. Member on 10th December, 1968.—[Vol. 775, c. 84.]

Mr. Bruce-Gardyne

Is it the Chancellor's intention, as recent inspired leaks have led us to understand, to seek further central bank swap arrangements to enable him to roll over these repayments into the period of the Conservative Government in 1971, and will he tell the House how much this operation will cost in terms of additional interest charges?

Mr. Jenkins

There have been no inspired leaks, and when I have a statement to make I will make it.

Mr. Barnett

In a country as wealthy as Britain, would not it be preferable and possible to negotiate a funding for debts which would permit us to forget our neurosis about the balance of payments and permit a higher rate of growth than hitherto?

Mr. Jenkins

I do not think that any rearrangement of our debts would obviate the need to get a balance of payments surplus at the earliest possible date.

Mr. Iain Macleod

As the figures which the Chancellor has given to the House of just under £500 million are clearly in excess of any likely balance of payments surplus this year, will he answer the last part of my hon. Friend's question: how does he plan to finance these payments?

Mr. Jenkins

No, Sir. I agree that there is a considerable problem of debt management during this year—of course there is—and this makes it necessary to devote the greatest possible attention to building up the surplus as quickly as possible. When I have a statement to make on the detailed point I will do so.