§ 29. Mr. Kenneth Bakerasked the Chancellor of the Exchequer what reduction has been made in the United Kingdom's overseas indebtedness from June, 1970 to the end of February, 1971.
§ Mr. BarberFrom end of June, 1970, to end December, 1970, official long-term debt was reduced by £72 million, and short- and medium-term debt by £92 million. Since then there have been published reduction in short- and medium-term debt totalling a further £94 million.
§ Mr. BakerWhile appreciating that the reduction of overseas debt is normally associated with periods of Conservative rule, may I ask my right hon. Friend to bear in mind over the next three weeks that balance-of-payments and reserve considerations should not predominate in determining the level of Bank Rate?
§ Mr. BarberMy hon. Friend will not expect me to say more than that I have taken note of what he said. But he is, of course, right in the first part of his supplementary question. The converse is equally true. During periods of Labour Government our overseas indebtedness tends to increase.