HL Deb 05 December 1951 vol 174 cc799-800

2.42 p.m.

LORD STRABOLGI

My Lords, I beg to ask the first Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask His Majesty's Government whether they will explain the circumstances under which the State of Israel left the sterling bloc; and whether it is intended that arrangements will be made for the re-admittance of the State of Israel to the sterling bloc.]

THE CHANCELLOR OF THE DUCHY OF LANCASTER (VISCOUNT SWINTON)

My Lords, Israel has never been a member of the sterling area. The former mandated territory of Palestine was a member, but this arrangement was brought to an end shortly before the termination of the Mandate in May, 1948. No occasion has yet arisen to consider the question of admitting Israel to the sterling area.

LORD STRABOLGI

My Lords, may I ask the noble Viscount whether this matter will receive the attention of His Majesty's Government, in view of the economic situation in the Middle East generally and in our own interests as well?

VISCOUNT SWINTON

It certainly will receive consideration when it arises.

LORD WILMOT OF SELMESTON

My Lords, may I ask whether any consultations are being held about the use of sterling balances and other relevant matters?

VISCOUNT SWINTON

Consultations with whom?

LORD WILMOT OF SELMESTON

Between the Government of Israel and His Majesty's Government.

VISCOUNT SWINTON

Yes; so long as sterling balances are held in Israel, of course there is consultation.