HC Deb 15 February 1972 vol 831 cc225-6
10. Mr. Coombs

asked the Chancellor of the Exchequer if he will make a further statement on the current international monetary situation.

Mr. Maurice Macmillan

The immediate situation is satisfactory, but there is an underlying need to make progress with the reform of the international monetary system.

Mr. Coombs

Will my right hon. Friend please expand as soon as possible, I hope today, on how discussions are going on the long-term reform of the international monetary system along the lines set out in the proposals of the Chancellor of the Exchequer last September?

Mr. Macmillan

The subject is under discussion in the Executive Board of the International Monetary Fund. As my hon. Friend will understand, the substance of those discussions must remain confidential. Treasury Ministers and officials exchange views with their opposite numbers in other countries whenever opportunity offers. We cannot expect progress to be very quick on changes as fundamental as those suggested by my right hon. Friend the Chancellor of the Ex- chequer at last September's I.M.F. meeting.

Mr. Roy Jenkins

Will the right hon. Gentleman tell us whether the difficulties relating to the dollar as an acceptable medium of exchange for I.M.F. transactions, which is a symptom of the underlying difficulty of the present world monetary system, in particular relation to our repayment of debt, have been sorted out?

Mr. Macmillan

There is a later Question on the Order Paper on this subject. I agree that it is not satisfactory that I.M.F. operations should be hampered as they are at present by dollar inconvertibility. I hope that it will soon be possible to find a way round so that we can get back to normal.

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