HC Deb 18 July 1972 vol 841 cc72-5W
Mr. Loveridge

asked the Chancellor of the Exchequer if he will make a statement on what now constitutes the sterling area; and if he will schedule how the regulations differ as between one country of the sterling area and another, as well as with the other nations of the world.

Mr. Nott

The sterling area may be regarded as comprising the United Kingdom, the Republic of Ireland and all other countries of the overseas sterling areas as listed below.

The following schedule lists the main differences between the exchange control rules applicable to transactions by United Kingdom residents with the overseas sterling area, except for the Republic of Ireland, and with the rest of the world. For all sterling area countries to which exchange control applies, the rules are identical.

Following is the information

  • Australia, including
  • Christmas Island
  • Cocos (Keeling) Islands
  • New Guinea
  • Norfolk Island
  • Papua
  • Bahamas
  • Bahrain
  • Bangladesh
  • Barbados
  • Bermuda
  • Botswana
  • British Honduras
  • British Indian Ocean Territory comprising
  • Aldabra
  • Chagos Archipelago
  • Desroches
  • Farquhar
  • British Solomon Islands
  • Protectorate
  • British Virgin Islands
  • Brunei
  • Cayman Islands
  • Ceylon (now known as Sri Lanka)
  • Cyprus
  • Falkland Islands and Dependencies (South Georgia and South Sandwich Islands)
  • Fiji
  • Gambia, the
  • Ghana
  • Gibraltar
  • Gilbert and Ellice Islands Colony including Central and Southern Line Islands,
  • Gilbert and Ellice Islands,
  • Northern Line Islands
  • Ocean Island
  • Phoenix Islands
  • Guyana
  • Hong Kong

Type of transaction Overseas Sterling Area Non-Sterling Area
Finance of outward direct investment. Permitted with foreign ex-change at the market rate for current transactions. For quick-return projects, foreign exchange up to £250,000 or 50 per cent. of the cost, whichever is the greater, is permitted at the market rate for current transactions; for other projects, permitted methods include approved profit retentions, foreign currency borrowing, exports free of payment, and investment currency. For investments in EEC countries. Denmark and Norway, foreign exchange at the market rate for current transactions is permitted up to £1 million per project per year.

  • Iceland
  • India, and Sikkim
  • Jamaica
  • Jordan, the Hashemite Kingdom of
  • Kenya
  • Kuwait
  • Leeward Islands comprising
  • Anguilla (including Sombrero)
  • Antigua (with Barbuda)
  • Montserrat
  • St. Christopher and Nevis
  • Lesotho
  • Malawi
  • Malaysia
  • Maldive Islands
  • Malta
  • Mauritius and Dependency (Rodriques)
  • Nauru
  • New Zealand including
  • Cook Islands
  • Nive Island
  • Tokelau Islands
  • Nigeria
  • Oman
  • Pakistan
  • Pitcairn Islands
  • Qatar
  • St. Helena and Dependencies (Ascension Island and Tristan da Cunha)
  • Seychelles
  • Sierra Leone
  • Singapore
  • South Africa, the Republic of
  • South West Africa, the Territory of
  • Sri Lanka
  • Swaziland
  • Tanzania
  • Tonga
  • Trinidad and Tobago
  • Turks and Caicos Islands
  • Uganda United Arab Emirates, the, comprising
  • Abu Dhabi
  • Ajman
  • Dubai
  • Fujairah
  • Ras al Khaimah
  • Sharjah
  • Umm al Qaiwain
  • Western Samoa
  • Windward Islands comprising
  • Dominica
  • Grenada
  • St. Lucia
  • St. Vicent
  • Yemen, the People's Democratic Republic of Zambia

Type of transaction Overseas Sterling Area Non-Sterling Area
Finance of inward direct investment. United Kingdom sterling borrowing by United Kingdom subsidiaries of OSA companies is permitted without limit for their operations in the United Kingdom. Generally, between 70 per cent, and 100 per cent. of fixed assets must be financed from foreign currency sources, but 100 per cent. United Kingdom sterling borrowing is permitted for all new investments in assisted areas. United Kingdom subsidiaries of companies in EEC, Denmark and Norway may also borrow United Kingdom sterling without limit for their operations in the United Kingdom.
Portfolio disinvestment through investment currency market. 100 per cent, of proceeds of United Kingdom disinvestment from securities solely payable in OSA currencies may be treated as investment currency. 75 per cent, of proceeds of United Kingdom disinvestment from securities payable in non-OSA foreign currencies may be treated as investment currency.
Transfer of personal capital at time of emigration from United Kingdom*. Up to £20,000 per family Up to £5,000 per family.
Cash gifts by United Kingdom residents. Up to £1,000 per donor per year. Up to £300 per donor per year.
Sterling loans from United Kingdom banks. Permitted within existing arrangements with customers. Permitted only in strictly limited circumstances.
United Kingdom sterling credit for trade between countries other than United Kingdom and Republic of Ireland. Permitted between OSA countries and between OSA and NSA countries. Not permitted between NSA countries.
* Those emigrating to take up employment in OSA and EEC countries Denmark and Norway, are permitted to transfer on departure such funds as are needed to establish themselves.

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