§ 3.51 p.m.
§ LORD SHEPHERDMy Lords, with the permission of the House I should like to repeat a Statement that has just been made in another place by my right honourable friend the Chancellor of the Exchequer. If I may, I will use his own words.
"As the House is aware, the Government have felt for some time that there may be room for greater international co-ordination between those countries whose monetary and credit policies are liable to have a particularly significant effect in the world. In my speech to the International Monetary Fund last September, I pointed out the danger that tight credit and high interest rates which may be appropriate to any one country in the management of its own affairs can lead to competitive increases round the world from which none of us gains and all of us suffer. What is needed, if it can be achieved, is a measure of international disarmament of interest rates.
"It is for this reason that, after some preliminary discussion with my colleagues overseas, I invited M. Debré, of France, Professor Schiller, of the 26 Federal German Republic, Signor Colombo, of Italy, and Mr. Fowler, of the United States, to the meeting which will be held at Chequers next weekend. I am glad to tell the House that all of them readily accepted the invitation. We shall be having exploratory talks with a view to reaching a better understanding of the bearing on each other's positions of the monetary measures that we take, and it is the Government's hope that they will lead in due course to improved co-ordination between our countries which will be of practical benefit to us all."
§ My Lords, that is the end of the Satement.
§ LORD HARLECHMy Lords, I should like to thank the noble Lord, Lord Shepherd, for repeating that Statement, which of course confirms what most of us have read in the newspapers this morning. It seems to us that the purposes of the meeting are admirable and we wish the Chancellor every success. But would not the noble Lord agree that the level of interest rates is closely bound up with the supply of money, and will this opportunity be taken for further discussions on the whole question of the international monetary situation?
§ LORD SHEPHERDMy Lords, I am most grateful to the noble Lord, Lord Harlech, for what he has said, and I will certainly see that his good wishes are conveyed to my right honourable friend. 27 The high interest rates which the world has suffered, particularly in Europe and in the United States, are a matter which gives all of us great concern. I think that it reflects the shortage of liquidity which we discussed in this House some weeks ago. My understanding of this meeting of Finance Ministers is that they will discuss all aspects of world finance, and I am quite sure that one or other of the Ministers taking part in that meeting will bring up this subject. I am quite sure that my right honourable friend himself would be interested in this matter, when one remembers his serious remarks and the warnings he gave at the last I.M.F. conference.
§ LORD OGMOREMy Lords, in view of the importance of Switzerland in the international monetary field, is the Chancellor of the Exchequer to have any consultation with the Swiss Finance Minister on this problem?
§ LORD SHEPHERDMy Lords, this meeting has been arranged among, I suppose, the four major countries specifically involved in the discussions at the last International Monetary Fund Conference. As the noble Lord is aware, there are continuing discussions—not necessarily meetings, but contact through official communications—with all the countries involved, particularly Switzerland, in international finance.
§ THE EARL OF DUNDEEMy Lords, could the noble Lord say whether the Chancellor intends to raise the question of the world price of gold, which is a matter closely related to the question of liquidity?
§ LORD SHEPHERDMy Lords, I do not believe that there is an agenda for this meeting: certainly I have not seen one. This is obviously a question which could well arise at this meeting.
§ LORD SILKINMy Lords, I welcome this meeting, as does everybody else, but can the noble Lord explain how it is that the B.B.C. were able to announce this news this morning, and that it appeared in the Press, before the announcement was made to this House?
§ LORD SHEPHERDMy Lords, I do not think that the announcement on the B.B.C. or in the Press of this meeting was 28 one of the "leaks" to which the noble Lord used on occasions to refer when we both sat on the Opposition Benches. The Statement was made because, clearly, the meeting is shortly to take place, and no doubt this fact was known overseas. The purpose of making the Statement was, as a matter of right to both Chambers, to announce this important meeting. I do not think there is any question of a "leak" or in any way—what is the right phrase?—taking a line which is not right for both Houses.