HC Deb 17 May 1973 vol 856 cc1698-9
Q2. Mr. Meacher

asked the Prime Minister if the public speech made by the Foreign Secretary in London on 2nd May to WEU committee members on monetary reform represents the policy of Her Majesty's Government.

The Prime Minister

Yes, Sir.

Mr. Meacher

When the Foreign Secretary said in that speech that international monetary reform was the world's first need, did not it show that the Government have already sold out this country's defences by virtually abandoning capital controls in the face of the multinational companies and international currency speculators? Is not that utterly irresponsible, when the liquid assets of the multi-national companies today are more than twice the total of the entire world currency reserves?

The Prime Minister

Not for the first time, the hon. Gentleman's facts are wrong. We have not abandoned exchange control. We have undertaken our obligations to the Community, like the other members of it. But exchange control remains.

Mr. Tapsell

I strongly support the important initiatives which my right hon. Friend the Prime Minister has taken in this matter, but does he not agree that there is a growing view that the Committee of 20 is making very slow progress? Would not it be possible for a European committee to be set up to look into our domestic EEC problems?

The Prime Minister

I know that the feeling exists that the work of the Committee of 20, so far, has been slow. It is not for me to make any judgment about it. When a committee of this kind meets it has to do a great deal of groundwork before beginning to come to firm conclusions. We hope that at the next meeting of the Ministers concerned it will be possible to see greater progress. It is right that the Community should have a common position on monetary reform. It is in process of forming that.