§ Sir C. Osborne
asked the Chancellor of the Exchequer if he is aware that August and September are the traditionally dangerous months for sterling; if he will take steps to demonstrate the underlying strength of sterling so as to forestall another crisis of confidence in the £; if he will give an assurance that any exchange control that may be necessary to defend sterling will be imposed should the need arise; and if he will make a statement.
§ Mr. Callaghan
As I told the hon. Member in Answers to similar Questions210W last month, the strength of sterling will be reinforced as we get the balance of overseas payments right. The figures so far available show that substantial progress has already been made this year in the process of recovery. We are not yet out of deficit but we have adequate resources.