§ 70. Mr. W. Fletcherasked the Chancellor of the Exchequer why the foreign exchange department of the Bank of England has forbidden banks to allow the honouring of sterling contracts containing an exchange clause, whereby the sterling price of the commodity to be imported was increased in the event of devaluation of the pound.
§ Mr. JayThe exchange variation clause means that the importer had assumed a contingent liability to pay more sterling than was allowed by the licence. My right hon. and learned Friend has not felt able to make arrangements to allow an uplift of the sterling value of the licence in such cases. If any importer feels that there are special circumstances in his case which would justify an uplift, he should apply to the Import Licensing Department of the Board of Trade.