HC Deb 15 June 1971 vol 819 cc208-9
3. Mr. Moate

asked the Chancellor of the Exchequer what are the latest figures for the United Kingdom overseas investments, and what proportions are invested in the United States of America, Commonwealth countries and the European Economic Community, respectively.

The Chief Secretary to the Treasury (Mr. Maurice Macmillan)

United Kingdom private overseas investments at the end of 1970 are estimated at £14,400 million (about half direct and half oil and portfolio). The proportions invested in the areas mentioned are approximately 20, 40, and 10 per cent. respectively.

Mr. Moate

I thank my hon. Friend for his helpful reply, but does he not agree that the figures of company direct investment show that two-thirds of the direct investments are in the Commonwealth and sterling area countries, and that in Australia alone companies have more funds invested than in all the Common Market countries? Does he not agree that this is an indication of the present and future strength of the Commonwealth and sterling area territories?

Mr. Macmillan

I am happy to agree with my hon. Friend that investment in, for example, Australia is rising, but investment from the United Kingdom in Australia is not rising as fast as investment either from the United States and Canada or from the rest of the world. United Kingdom investment for the period from 1947–48 to 1951–52 was 68 per cent. of the total, and it has now dropped to 40 per cent. Investment in that period from the rest of the world was 8 per cent. and has now risen to 17 per cent. Equally, the last few years have shown a great increase in the proportionate investment of the United Kingdom in the E.E.C. countries compared with the Commonwealth countries.

Mr. Cant

Bearing in mind the tendency of the United States to buy up the industry of Western Europe with dollars borrowed from the Eurodollar market financed by its own balance of payments deficit, what is the hon. Gentleman prepared to do as a quid pro quo to persuade the United States authorities to permit companies in the United States to issue dividend gross equities to non-United States resident companies so that we can buy up American industry?

Mr. Macmillan

That is an extremely interesting question, but I do not think it arises out of this one.