HC Deb 05 October 1944 vol 403 cc1150-1W
Captain Duncan

asked the Chancellor of the Exchequer whether he has any statement to make regarding monetary arrangements with Belgium.

Sir J. Anderson

I am happy to be able to announce that a Monetary Agreement is being signed to-day between His Majesty's Government and the Belgian Government. The following are the salient features:

  1. 1. The official rate of exchange between the Belgian franc and the pound sterling will be 176.625 francs=£1 and shall not be varied except after mutual consultation.
  2. 2. The sterling held by residents in the Belgian monetary area will be available for expenditure in the Sterling Area and, as opportunity offers, it will be sought, with the consent of other interested parties, to make sterling available for payments outside the Sterling Area.
  3. 3. It is provided that if the Contracting Governments adhere to a general International Monetary Agreement the terms of the present Agreement will be reviewed, with a view to making any amendments that may be required.
  4. 4. The Belgian Congo will leave the Sterling Area and be brought within the Belgian Monetary area.
  5. 5. The Agreement will remain in force for three years, unless terminated earlier by three months' notice given by either party.

Copies of the Agreement will be made available to hon. Members. The resumption of normal financial and commercial intercourse between the two countries must, of course, await the restoration of postal facilities. A full announcement in regard to this will be made in due course.

I am also pleased to be able to announce that His Majesty's Government have reached agreement in principle with the Royal Netherlands Government for a Monetary Agreement on similar lines. This will be signed as soon as certain technical details have been worked out.