HL Deb 27 July 1965 vol 268 c1187

It is the Government's policy to limit to the greatest possible extent facilities for financing imports of manufactured goods for home consumption and imports of all kinds for stockbuilding. With the Government's approval, the Governor of the Bank of England has now written a further letter to the banks. It asks them to scrutinise with even greater care than they do already all requests for credit when there is prima facie evidence that to provide the finance would facilitate payment for imports.

As regards prepayment for imports, at present payment for imports into this country may be made at any time between the date of contract and the date of arrival of the goods. In future payments will not normally be allowed before the goods have been shipped. This should produce a useful once-for-all saving and help to check excessive purchases.

If the exchange control measures I mentioned earlier are continued for a full year, these, together with this once-for-all saving should produce a total saving in official exchange of at least £45 million over the next year.

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