Sterling Area (Hansard, 18 July 1972)

§ 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

DIFFERENCES IN EXCHANGE CONTROL RULES FOR TRANSACTIONS BY UNITED KINGDOM RESIDENTS WITH OVERSEAS STERLING AREA (EXCEPT REPUBLIC OF IRELAND) AND THE REST OF THE WORLD
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.

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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

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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.