§ Mr. Ernest Daviesasked the Chancellor of the Exchequer what arrangements are being made in regard to the purchase of gold from South Africa.
§ Mr. DaltonAn agreement has been concluded under which the South African Reserve Bank will sell not less than£80 million worth of gold to the Bank of England for each of these two years, 1946 and 1947, at a price of 172s. 6d. per fine ounce. This price, which is 3d. more than the price of 172s. 3d which is paid by the Bank of England for other newly-mined gold, has been determined by reference to the cost of the shipment of gold from Cape Town to New York and takes into account existing freight and insurance charges. This price is appropriate only to the special circumstances of South African gold and has no significance whatsoever with regard to our general gold price or exchange rate policy. This price of 172s. 6d. is subject to adjustment in the event of a change in the172W middle sterling dollar rate or in the net United States buying price for gold. The Bank of England will provide the Union of South Africa's requirements of foreign currencies against sterling.