§ Mr. Asterley Jones
asked the Chancellor of the Exchequer why Palestine has been excluded from the sterling area.
§ Sir S. Cripps
This action was taken because His Majesty's Government must assume that, for a period at least, during and after the withdrawal of the present administration, a thorough and comprehensive exchange control will be lacking in Palestine. If in these circumstances Palestine had remained within the sterling area there would have been a danger of leakages of funds not only from Palestine itself, but from other countries within the sterling area remitting through Palestine.