HC Deb 06 December 1979 vol 975 c592

5. Mr. Hooley asked the Chancellor of the Exchequer what proposals Her Majesty's Government intend to make within the International Monetary Fund to assist the creation of a substitution account.

The Chancellor of the Exchequer (Sir Geoffrey Howe)

We agreed at the IMF annual meeting in October that the next step was for the IMF executive board to examine the technical problems of setting up a substitution account. It is due to report back in April.

Mr. Hooley

Will the Chancellor be a little more positive and forthcoming? Does he agree that, in view of the fluctuations of the dollar, and the wild variations in the price of gold, it is important to bring some stability into foreign exchanges? A substitution account could help considerably.

Sir G. Howe

As I have said, at the IMF meeting we supported the steps suggested. The substitution account could, in principle, make a useful contribution to the stability of the international monetary system.