HC Deb 20 December 1976 vol 923 cc25-8
42. Mr. Tim Renton

asked the Chancellor of the Duchy of Lancaster whether he will make a statement on his recent visit to Washington and on the discussions that he had there.

43. Mr. Hooley

asked the Chancellor of the Duchy of Lancaster if he will make a statement on his recent conversations in Washington with representatives of the United States Administration.

The Chancellor of the Duchy of Lancaster (Mr. Harold Lever)

I visited Washington from 13th to 17th November. While there, I discussed general economic and financial questions with leading members of the United States Administration. Our talks were wide-ranging, open and friendly and were marked by a spirit of warmth, understanding and good will.

Mr. Renton

Although I am delighted that the Chancellor's talks were marked by a spirit of warmth and understanding. may I ask him whether he was not very disappointed that the new swap facilities with the United States are in the amount of only $500 million? Is not this a sign of a total lack of faith on the part of the United States in this Government? To what extent does he believe that all the swaps and standbys announced last week will be able to see us through several months of balance of payments deficits at the rate of £500 million a month?

Mr. Lever

I was not in the least disappointed. No requests of ours have been refused. The consoling hallucinations of the hon. Gentleman and many of his hon. Friends about the unwillingness of the international authorities and of other Governments to trust the credit of this Government have no basis in fact. As for the future, the massive act of international financial co-operation of which this forms—we hope—a part will be quite ample to see this country through its financial needs in the year ahead.

Mr. Hooley

Did my right hon. Friend's conversations include any long-range proposals on the part of the United States Administration for a more general reform of the international monetary system, which clearly is not operating now that we have fluctuating exchange rates as opposed to the fixed system which operated so successfully for 25 years in the post-war period?

Mr. Lever

I touched on wider issues of less immediate importance than those to which I have already referred, and I found widespread recognition of the fact that there were many aspects of the international monetary and financial system that were worthy of study and advance. I have no doubt at all that in the period ahead of us we—that is, the great trading nations of the world—shall have to make further advances in our international financial co-operation to sustain the progress in world prosperity that we are all seeking.

Sir J. Langford-Holt

The Chancellor said that he had had discussions with the leading members of the United States Administration. Which Administration did he mean? Did he mean the Administration that is powerless before February, or did he mean the Administration that will be powerless after February?

Mr. Lever

There is only one Administration. Members of the British Government—at any rate, members of the Government now on this side of the House—when they have contact with foreign Governments, have contact with the existing Government who are in power and who will remain the Government in power until pretty well near the end of January. I had no contact with any notional Administration whose personnel could at that time be known.

Mr. Skinner

Will my right hon. Friend tell me, as a business man who has made a few bob in his time—

Mr. Russell Kerr

Who—my hon. Friend?

Mr. Skinner

I am referring to my right hon. Friend. Will he tell me whether he discussed the cock-eyed scheme to sell off £500 million worth of a nationalised industry—British Petroleum—to whoever the lucky bidder is, especially when he, in another capacity a short time ago, was chiefly responsible for assembling not all that much but as much as was possible for the State in respect of the oil profits and so on from the North Sea?

Mr. Lever

The question of British Petroleum did not form part of any discussions in the United States. I do not know whether my hon. Friend wants me to relate this sale and the reasons for it to the possibilities of his emulating in any way my own modest advance in preparing for my old age, but he has a long time ahead of him and I shall be very happy, in the gap between now and then, to assist him in that way too.

Mr. Biffen

When the Chancellor was in Washington, did the American authorities give any indication whatsover that they favoured a return to a system of fixed exchange rates?

Mr. Lever

No, Sir.