§ Colonel WEDGWOODasked the Under Secretary of State for the Colonies why the rupee in East Africa has been fixed at 10 to the pound (paper) when it has been fixed in India at 10 to the pound (gold); and whether, in coming to this decision to artificially regulate the exchange, the views of the Indian traders or the interests of the native wage-earners in East Africa were considered, as well as those of the white planters who have to pay wages and to import capital?
§ Lieut.-Colonel AMERYThe dependence of East Africa on the United Kingdom both for its market and for the capital required for development has made it desirable to stabilise the East African exchange on a sterling basis. In deciding to prevent the East African rupee being forced up above 2s. 4d. by the recent action of the Government of India in respect of the Indian exchange, and to fix it eventually at 2s., the most careful consideration was given to the interests, not only of the settlers, who have been seriously affected by the appreciation of the rupee, but also of those persons, Indians and others, who have commitments in or dealings with India, and of the native wage-earners.