§ Mr. Patrick Jenkin
Like all exchange control rules, this rule is kept under review. But my right hon. Friend has to weigh against the disadvantages the inflow of foreign currency which it brings to our official reserves, running at about £100 million per year.
§ Mr. Dixon
Does not my hon. Friend agree that the present regulations, far from helping our balance of payments, inhibit British investors in trying to increase their income from overseas sources and to increase the capital value of their investment, and, therefore, in the long run, positively harm our balance of payments?
§ Mr. Jenkin
I recognise that point of view, but we do not hold it at present. We realise that the rule has an inhibiting effect on the management of overseas portfolios, but one must bear in mind the advantage to the reserves that it brings in the short and medium-term.