§ Sir C. Osborne
asked the Chancellor of the Exchequer, since the United Kingdom's latest drawing from the International Monetary Fund on 25th May of $1,400 million brought the Fund's holding of sterling up to 198 per cent. of the United Kingdom quota, and 200 per cent. is the maximum, what other sources are available to support sterling; if he will now cut down Government expenditure instead of seeking further loans; and if he will make a statement.
§ Mr. Callaghan
Apart from the reserves of gold and convertible currencies, the swap facility with the Federal Reserve Bank of New York, credit with the U.S. Export-Import Bank and the Government's portfolio of dollar securities, the major strength of sterling lies in the productive capacity of British industry.
As regards the second part of the Question I would refer the hon. Member to the Answer which I gave him on 11th May.