§ I propose to introduce some further changes in exchange control. The first concerns direct investment outside the Sterling Area. Hitherto, official exchange has been allowed in certain cases regarded as specially favourable for the balance of payments. For the time being no further approvals will be given for the use of official exchange. All approved projects will have to be financed with investment currency or by borrowing abroad.
§ Another change concerns investment currency. I announced in the Budget 1187 that certain receipts of foreign currencies by residents of the United Kingdom which had hitherto been allowed to be sold as investment currency would in future be exchanged at the official rate. The same change will now be made in respect of certain other receipts, including the proceeds of life policies and the assets of immigrants redesignated as residents of the United Kingdom.
§ Finally, I am asking the Bank of England to exercise more uniform control over borrowing in this country by companies registered here but controlled by non-residents of the Sterling Area.