§ Mr. F. M. Bennett
asked the Chancellor of the Exchequer if he will make a statement about the modification of exchange control restrictions over investment in the non-sterling area.
§ Mr. Selwyn Lloyd
Yes. Since last July the rule has been to permit only investments which promised a clear and commensurate benefit to the balance of payments in the short term. I am now prepared to permit a direct investment which would have been allowed before July but which does not satisfy the stricter test to take place through the switch dollar market or to be financed by suitable borrowing abroad. The two existing switch dollar markets are being amalgamated. Direct investment which satisfies the conditions introduced in July can be financed by the use of official exchange.