HC Deb 31 October 1956 vol 558 cc172-3W
Mr. Ramsden

asked the Chancellor of the Exchequer whether he will make a statement concerning the financial agreement between the United Kingdom and India.

Sir E. Boyle

Yes. The following statement is being issued today in Nw Delhi and in London The Financial Agreement between the Governments of India and the United Kingdom dated 20th July, 1953, expires on 30th June, 1957. The purpose of that Agreement was to regulate the release of sterling from the balances that had been accumulated by India during the war period. The Government of India and the Government of the United Kingdom having consulted together, consider that no grounds exist which make it desirable to replace the current Agreement on its expiry by a fresh one and its provisions will accordingly lapse on the due date. The expiry of this Agreement does not in any way affect India's right and competence to draw upon her sterling balances. Nor does it affect the position in regard to the treatment of remittances of savings and the voluntary repatriation of investments by United Kingdom citizens as secured by Section 3 of Article VII of the Agreement. This position is in accord with and follows from the policy of the Government of India on this subject as enunciated in their resolution No. 1 (3)-44 (13)/48 dated 6th April, 1948, and in the statement made by the Prime Minister in Parliament on 6th April, 1949. It is the intention of the Government of India to continue their present policy in this respect.