§ Q1. Mr. Meacherasked the Prime Minister if he will seek to place the subject of a Commonwealth initiative for international monetary reform on the agenda of the Commonwealth Prime Ministers' Conference.
§ The Prime Minister (Mr. Edward Heath)I see no need to do so at present. Discussions about reform are centred in the Committee of Twenty where all Commonwealth International Monetary Fund member countries are represented.
§ Mr. MeacherSince the collective European float now shows that the Prime Minister's European commitment is incompatible with growth as the first priority of this country, does he now put Britain or Europe first? If it is Europe, does he seriously think that Britain would survive a collective float for much longer than the seven weeks of the previous snake in the tunnel? If Britain is to be first, why did he join the European Club if he cannot keep to the rules?
§ The Prime MinisterI do not agree that they are incompatible.
§ Sir Gilbert LongdenContrary to what the hon. Gentleman has said, does my right hon. Friend not agree that if the Chancellor's conditions could be met by our European allies they would bring great advantages to our country by fixing the exchange rate, which would enable us to keep import prices down? In addition, the rate would be supported by the resources of the Community and therefore would be secure. Does he not also agree that it would be insulated against the risk inherent in the sterling balances?
§ The Prime MinisterMy hon. Friend is quite right, and it would be in the truest sense a Community solution to deal with some of the pressing international monetary problems.