§ Q20. Mr. Frank Allaunasked the Prime Minister if she will make an assessment of the implications for the United Kingdom economy of the relationship between United States Government expenditure and international interest rates.
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§ The Prime MinisterI welcome the recent falls in United States interest rates. The United States Government's efforts to reduce inflation have our strong support. Their success is in the interests of the whole world economy. The policy of restraining United States monetary growth is essential and this will be facilitated by President Reagan's proposed cuts in real federal expenditure for fiscal year 1983.