§ 9. Dr. Gilbertasked the Chancellor of the Exchequer if he will seek to reconstitute the official portfolio of United States dollar stocks and shares.
§ Mr. HigginsNo, Sir.
§ Dr. GilbertWhy not, briefly? Would it not be sensible, now that our reserves are at the highest level ever, and steadily increasing, for the Government to try to maximise the return that they receive on them—or is the Chancellor of the Exchequer afraid that they will be severely diminished as a result of the measures incorporated in the Budget?
§ Mr. HigginsI must confess that the relevance of the last part of the hon. Gentleman's remarks eludes me. I cannot be drawn into detailed comments about the disposition and management of the reserves. The broad aim is to achieve a satisfactory balance between liquidity, safety and the rate of return.
§ Mr. EmeryWithout the dollar portfolio, the last Government would have been hard-pressed on this reserve position. Therefore, our hidden reserves have been of great value to us in the past, whether they were United States or other stocks. There is advantage in considering that whole matter. Will my hon. Friend give further thought to it?
§ Mr. HigginsI do not necessarily dissent from my hon. Friend's view. This is a matter concerned with the broad management of reserves, to which a great deal of thought is given. But, on the original Question, it is important to look forward and not backward.