HC Deb 20 May 1969 vol 784 cc211-3
2. Mr. Bruce-Gardyne

asked the Chancellor of the Exchequer if he will make a further statement on the progress of his discussions with the Government's overseas creditors regarding the rescheduling of its international debts.

10. Sir C. Osborne

asked the Chancellor of the Exchequer if he will publish the advice given to him by the International Monetary Fund representatives whilst in London during their recent inspection of the United Kingdom's finances.

17. Mr. Ridley

asked the Chancellor of the Exchequer if he will make a statement on the findings of the latest visit of the International Monetary Fund team to the Treasury in relation to the state of the economy.

25. Mr. Sheldon

asked the Chancellor of the Exchequer if he will make a further statement on the rephasing of Great Britain's external debts.

Mr. Roy Jenkins

I would refer to my statement in the House on 14th May, in reply to a Private Notice Question by the right hon. Member for Enfield, West (Mr. Iain Macleod), and to the Answer given by my hon. Friend the Financial Secretary in reply to another Question the previous day by the hon. Member for Banbury (Mr. Marten).—[Vol. 783, c. 1402–10; Vol. 783, c. 1207.]

Mr. Bruce-Gardyne

Now that the Chancellor has once again had to admit that his forecast of balance-of-payments surplus has been further postponed into next year, will he not agree that the present Government are about as much to be trusted with additional dollops of foreign charity as the junkie is to be trusted with free drugs? In the light of that, will he ensure that the Letter of Intent contains the most strict and rigorous control on the Government, trigger clauses and all?

Mr. Jenkins

I regard that as a bad supplementary question, even by the hon. Member's standards.

Mr. Ridley

Next time the Chancellor wants to have a drink party to tell hon. Members on what the I.M.F. has insisted, will he be kind enough to ask me as well as his hon. Friends?

Mr. Jenkins

I shall always be glad to have a discussion with the hon. Member, either with or without a drink, but I can assure him that no information was given last night which I have not given to the House.

Mr. Sheldon

In seeking to rephase our foreign debts, particularly with the I.M.F., will my right hon. Friend avoid an excessive commitment to the newly-found theory of money supply which, although of course of some importance, must not be exaggerated in view of the lack of knowledge that we have about its effect as it applies to this country?

Mr. Jenkins

As I said in my Budget speech, I attach the greatest importance to monetary policy. We need a tighter monetary policy than we had last year.

Mr. Dickens

May I reinforce the point made by my hon. Friend the Member for Ashton-under-Lyne (Mr. Sheldon) and invite my right hon. Friend to resist the dangerous pre-Keynesian archaic nonsense of trying to limit the money supply in this country? Is my right hon. Friend aware that such a step could only exacerbate the country's basic economic problems and would not improve the situation?

Mr. Jenkins

I assure my hon. Friend that my thought is post-Keynesian on this as on other matters.

Sir G. Nabarro

Notwithstanding that yesterday evening's meeting of the Parliamentary Labour Party was supposed to be private and a full report of it appeared on the front page of the Financial Times this morning, would the right hon. Gentleman say whether it is his policy, as reported, to attack as the first priority the supply of money in order to redress our balance of payments?

Mr. Jenkins

I stand completely by my Budget Statement, an extract of which I have just quoted, that I attach the greatest importance to monetary policy.