§ 7. Sir B. Rhys Williams
asked the Chancellor of the Exchequer what steps have been taken to provide independent reserves for the European Fund for Monetary Co-operation; what is now the total amount of funds available to it; and if it has been agreed to appoint a managing director.
§ Mr. Nott
The question of providing the European Monetary Co-operation Fund with reserves is being considered in the context of the discussions on the second stage of economic and monetary union. At present the EMCF has no such reserves, and though the fund's board of governors meets regularly it is premature to consider appointing a managing director at this stage.
§ Sir B. Rhys Williams
As it is obvious that the members of the International Monetary Fund have not come to a clear decision about the future of gold or the value of special drawing rights, should we not expect that it will be virtually impossible to secure a progressive pooling of primary assets in the Community in the immediate future? Will the Government therefore think of other ways in which the activities of the fund can be strengthened by practical measures which will win the respect of the Governments and financial communities within the EEC?
§ Mr. Nott
The problem which my hon. Friend mentions is a real one. Agreement has not yet been reached over the valuation of special drawing rights and gold. I cannot go further than my right hon. Friend, however, who said a moment ago that these were all matters that will have to be taken into account when the Government formulate a final view on the Commission's proposals for stage 2.