§ 67. Mr. Lowasked the Chancellor of the Exchequer whether he has permitted the Governments of Middle Eastern countries to which armaments have been sold to draw on their sterling balances in order to pay for them; and, if so, by how much the total of these sterling balances have been reduced.
§ Mr. GaitskellIn the five-year agreement made with Iraq in 1947 and in the agreements with Egypt for the years 1947, 1948 and 1949 provision was made for the release from No. 2 Account (i.e. blocked) sterling for the purchase of surplus military stores and fixed assets lying in the country in question. It would be contrary to public policy, however, to give details of these or other military purchases by foreign Powers. There have been no other releases of sterling balances specifically for the purchase of armaments.