§ Mr. Sheldon
asked the Chancellor of the Exchequer (1) what is the estimated annual cost since 1960 of interest and other charges on United Kingdom external liabilities in sterling;
(2) what is the estimated annual income since 1960 from interest on United Kingdom claims in sterling.
§ Mr. Callaghan
Interest paid on U.K. external liabilities in sterling is estimated to have been, in round figures:
£ million 1960 1961 1962 150 175 150 1963 1964 1965 125 175 200
Interest received on banking advances, which represent roughly one-third of U.K. external sterling claims, is estimated to have been, in round figures:
£million 1960 1961 1962 15 20 15 1963 1964 1965 20 25 30
The larger part of U.K. external claims in sterling is represented by commercial bills and acceptances. If allowance is made for interest on these included in "interest profits and dividends" and for interest included but not distinguished in the value of exports, the true net interest cost on U.K. net liabilities in sterling is probably now in the region of £100–£150 million per annum.