§ 52. Mr. Hopkinsonasked the Chancellor of the Exchequer whether, having regard to the heavy expenditure involved in the upkeep of British diplomatic. missions in Communist countries of Eastern Europe due to artificially high exchange rates, he will take steps to see that a proportion of British exports to those countries sufficient to cover those costs are paid for in their own domestic currencies.
§ Mr. GaitskellIn accordance with inter-Governmental agreements and commercial custom our trade with these countries is conducted in sterling. Much as I deplore the unreasonable exchange rates fixed by their Governments for diplomatic and similar expenditure, I do not favour any departure from a sterling basis of payment.
§ 53. Mr. Hopkinsonasked the Chancellor of the Exchequer whether he will take the necessary powers to enable him to forbid the transfer of sterling from the commercial to Embassy accounts of the Soviet Government and the other Eastern Europe Communist Governments represented in the United Kingdom, and to compel them to acquire the sterling for the use of their Embassy services by converting their currencies into sterling at rates corresponding to those fixed by them.
§ Mr. GaitskellI am afraid that the hon. Member's suggestion would not be effective in preventing the payment of Embassy expenses out of commercial accounts without a degree of detailed control both here and throughout the sterling area which would be completely impracticable.