§ Mr. Arthur Lewisasked the Chancellor of the Exchequer whether he is aware of the fact that large numbers of persons, formerly natives of and living in India, Pakistan, Bangladesh, etc., are regularly sending out sterling to their friends and relatives in their home countries; what is his estimate of the sums of sterling so exported; what action is taken to prevent abuse; and whether he will cause an investigation to be made into these matters.
§ Mr. Robert SheldonUnder current exchange control rules any United Kingdom resident may, from his own resources, make cash gifts or loans of up to £1,000 per calendar year to persons resident in the Overseas Sterling Area, which includes the countries mentioned. Any United Kingdom resident may also send up to an additional £2,000 per calendar year to support dependants overseas. Such remittances to India, Pakistan and Bangladesh, etc., by former natives of those countries are not separately identified, and I regret the information is not available on which an estimate could be based.
Applications to make payments within the relevant limits are approved subject to the completion by the applicant of a declaration as to the nature of the payment. Should the information provided by the applicant, or the declaration, subsequently be found to be false, it would be an offence under the Exchange Control Act 1947, and appropriate legal action would be considered.
I see no need for an investigation into these matters at the present time.