HC Deb 30 March 1971 vol 814 cc1330-1
2. Mr. Fry

asked the Chancellor of the Exchequer how much medium-term official overseas debt was outstanding on 18th June, 1970, or on the nearest convenient date; and by how much it has been reduced since then.

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

I define the medium-term debt as being that to the I.M.F.; this stood at £992 million at end-June, 1970, and since then has been reduced by £24 million. A repayment schedule for the greater part of the outstanding amount has recently been announced.

Mr. Fry

Would my hon. Friend accept my congratulations on the reduction of this medium-term debt? I hope that the years of Conservative Government will soon see the level falling to nil, as it was before the Labour Party came into office.

Mr. Macmillan

If my hon. Friend will consult Table 17 of Cmnd. 4631, he will see what happened to debt in the five years 1965–69, and subsequently in 1970.

Mr. Barnett

If the hon. Gentleman is accepting credit from his hon. Friend for the reduction of debt, is he prepared to accept the blame for the increase in inflation, unemployment and lack of growth?

Mr. Macmillan

During the five years 1965–69 the dollar portfolio of £500 million was sold, £100 million of that went to the reserves, and £400 million plus another £1,800 million was required to pay off the indebtedness of those five years.