§ THE EARL OF DUNDEEMy Lords, I beg leave to ask the Question which stands in my name on the Order Paper.
§ [The Question was as follows:
§ To ask Her Majesty's Government whether it is the case that in their conversations with President Nixon during his visit, the President agreed that he would endeavour to hasten the implementation of the I.M.F. Special Drawing Rights scheme by its signatories; and whether any further measures to facilitate international borrowing were discussed.]
§ LORD BESWICKMy Lords, the noble Earl will have seen the Prime Minister's Statement on this matter in another place on February 27. I can confirm that the Governments both of the United States and of the United Kingdom are agreed on the desirability of early ratification of the Special Drawing Rights scheme.
§ THE EARL OF DUNDEEMy Lords, I thank the noble Lord for his Answer, and I know how difficult it is to answer supplementary questions concisely on a subject of this kind. But as the noble Lord was kind enough to tell your Lordships the other day that these Special Drawing Rights should amount to an increase of 3 per cent. in the total volume of international liquidity each year, could I ask him whether the Treasury or our monetary advisers have compared this figure with the volume of international trade, and whether they have advised Her Majesty's Government that a 3 per cent. increase is anything like adequate?
§ LORD BESWICKMy Lords, I have armed myself with the figures, and it is true that the ratio of world reserves to world exports has decreased since 1948. I will not weary the House with all the figures, but world exports have gone up since 1948 to 1967 from 53.3 billion dollars to 190.5 billion dollars, and world reserves from 48 billion dollars to 73.5 billion dollars. There is scope for greater liquidity, but probably the noble Earl will bear in mind that international cooperation is now much better than it was in 1948 and, as with national currency, I think it is possibly time to say that 324 velocity of circulation is also important, as well as volume.
§ THE EARL OF DUNDEEMy Lords, I thank the noble Lord. Would he bear in mind that the reserves in 1948 were hopelessly inadequate—indeed far worse than they are now?
§ LORD BESWICKMy Lords, in answer partly to the noble Earl's original Question, I go so far as to say that whereas I have given him the figure of one to two billion dollars a year over the next five years as being the sort of figure which was originally thought of in the Special Drawing Rights Scheme, if we could get it above that figure Her Majesty's Government would be most pleased.