§ VISCOUNT MASSEREENE AND FERRARDMy Lords, I beg to ask the first Question which stands in my name on the Order Paper.
§ [The Question was as follows:
§ To ask Her Majesty's Government whether they will remove currency restrictions in the British West Indies, since the West Indies now earn more dollars than they spend.]
§ THE JOINT PARLIAMENTARY UNDER-SECRETARY OF STATE FOR FOREIGN AFFAIRS (THE MARQUESS OF LANSDOWNE)My Lords, currency restrictions in the British colonial territories, whether in the Caribbean area or elsewhere, are enforced under local legislation, though the Governments concerned act in consultation with Her Majesty's Government.
The purpose of currency restrictions is to maintain the strength of sterling and to protect the foreign exchange reserves of the sterling area as a whole, thus ensuring that all territories in the sterling area can be provided with dollars and other Foreign exchange for all necessary expenditure whether they are themselves net dollar earners or not. The fact that territories in one particular area are net dollar earners is not really the relevant consideration in deciding whether further relaxations can safely be made. It is, however, the aim of Her Majesty's Government to proceed as fast as possible with the removal of currency restrictions on the lines announced at the Commonwealth Trade and Economic Conference in Montreal and the colonial territories would be advised to follow a parallel line in this respect.
§ VISCOUNT MASSEREENE AND FERRARDMy Lords, I thank the noble Marquess for that reply. I feel that I ought to declare an interest here, as I have a small property in Jamaica. My object in asking the Question was to facilitate trade between the West Indies and the dollar area, especially Canada.