HC Deb 17 March 1970 vol 798 c184
16. Mr. Barnett

asked the Chancellor of the Exchequer what recent discussions he has had with central banks and other institutions on the phasing of United Kingdom debts; and if he will make a statement.

Mr. Roy Jenkins

I have had no such discussions.

Mr. Barnett

What advantage does my right hon. Friend see in reducing central bank debts with short-term money, whether "hot" or only slightly warm? Would it not be preferable to lower Bank Rate and renegotiate the central bank debts?

Mr. Jenkins

I do not accept what my hon. Friend says. There has been a natural re-flux of money to this country associated with the very strong position of our balance of payments and the return of confidence. I do not see any need to do as my hon. Friend suggests. Of course. Bank Rate was lowered a fortnight ago.

Mr. Maudling

Is it a fact that our total overseas indebtedness was increased by £356 million through the mishandling of devaluation and the effect on the Exchange Equalisation Fund?

Mr. Jenkins

I do not agree that there was a mishandling of devaluation.

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