HC Deb 05 July 1948 vol 453 cc19-20W
48. Colonel Crosthwaite-Eyre

asked the Chancellor of the Exchequer the total amount in 1947 and from 1st January, 1948, to the latest convenient date, respectively, of moneys released from sterling balances under agreements made by His Majesty's Government which have been utilised to purchase goods or settle debts in the United Kingdom and the sterling area, respectively.

Sir S. Cripps

, pursuant to his reply [OFFICIAL REPORT, 29th June, Vol. 452, c. 2013] supplied the following information:

In accordance with formal agreements made by His Majesty's Government with Argentina, Brazil, Ceylon, Egypt, India, Iraq, Pakistan and Uruguay, releases for general purposes during 1947 and the first five months of 1948 amounted to £68 million and £57.5 million, respectively. In addition there Were released as working balances during the same period £53 million and £25 million, respectively, while £35.5 million and £131 million were applied to purchases of United Kingdom concerns, repurchase of securities, etc.

The hon. and gallant Member will appreciate that the amounts I have given represent sums released from restricted accounts. Any sum so released to a country goes, together with its current earnings of sterling, into that country's general holdings and cannot thereafter be identified. It is therefore impossible to say whether or not it has been utilised, let alone whether or not these general releases have been used for payments to the United Kingdom or to the rest of sterling area.