§ Flight-Lieutenant Haireasked the Secretary of State for War whether he has any statement to make with regard to the currency in which troops of B.A.O.R. draw their pay.
§ Mr. LawsonYes, Sir. Hitherto it has been the practice to pay the troops in B.A.O.R. in the currency of the country in which they are serving. Owing to the scarcity on the Continent of goods generally, and particularly of cigarettes, it has been possible for troops to make large profits in local currency by selling canteen goods to civilians at inflated prices, and to use the proceeds for further canteen purchases, etc., Consequently the amount of local currency received back by Paymasters from canteens and Army post offices and exchanged by them for sterling or other currency has been more than that issued as pay. Despite the limits imposed on the amount of exchanges for individuals, which have been some check on these practices, Paymasters have accumulated very considerable balances of German marks, which will be a direct loss to the Exchequer. In order to protect the taxpayer, I am34W arranging for the introduction of special vouchers denominated in sterling which alone will be accepted for purchases in canteens, Army post offices, officers' shops and other official organisations. Troops serving on the Continent, while continuing to have their pay credited to them in this country, will be able to draw against their pay these special vouchers which they can use for purchases in the official organisations To enable troops to make purchases from other than official sources arrangements will be made for the exchange of these vouchers for local currency, but not vice versa. The vouchers will also be exchangeable into sterling when troops leave the theatre, but local currency will not be so exchangeable. The scheme will apply to all three Services and to the military and civilian staffs of the Control Commission for Germany (British Element). The task of printing and distributing the vouchers is considerable and at least two months will elapse before the arrangements can be implemented. I have, however, thought it proper to inform the House of my plans and at the same time to give the troops this provisional notice of the change.