§ 16. Mr. Silvesterasked the Chancellor of the Exchequer how much of the net borrowing requirement of £1,331 million in the financial year 1967–68 was financed from abroad.
§ Mr. Harold LeverThe financing of the central Government borrowing requirement is analysed in some detail in Table 16 of Financial Statistics, which gives the information for which the hon. Member is asking.
§ Mr. SilvesterIs it not true that the net borrowing of the central Government from overseas was £1,400 million or thereabouts in this period, and does not that mean that the Government are borrowing from overseas to help support public expenditure at home?
§ Mr. LeverNo, Sir. This is a specious and superficial argument. The Government borrows in foreign currency to support the reserves, and borrows in sterling to finance Government expenditure, and the fact that inevitably by reflex action a deficit produces some counterpart funds surplus of opposite consequence does not entitle the hon. Member to make this entirely meaningless conjunction.