§ Mr. Norman Lamontasked the Chancellor of the Exchequer what would be the resulting improvement in the balance of payments for 1974–75 on the basis of the volume figures forecast in the Red Book for exports and imports if there is no change in the terms of trade.
§ Mr. DellEven if the terms of trade remain unchanged, the effect on the balance of goods and services in current price terms will vary depending on the 73W size of the change in import and export prices. It is not customary to provide official forecasts of import and export prices. Monthly import and export price indices for 1973 were published in the journal Trade and Industry of 28th February 1974. If these indices are applied to the volume forecasts in Table 4 of the Financial Statement a value forecast of the balance of overseas trade in goods and services in terms of 1973 prices can be obtained.