§ 99. Mr. Stokesasked the Chancellor of the Exchequer what steps he is taking to correct the contractionist policy which has followed the January meeting of the Commonwealth Finance Ministers; and to reverse the cut in trade which, in fact, has followed that meeting in view of the declaration then made that the United Kingdom and Australia would follow a policy of expansion.
§ Sir A. SalterThe first and most urgent objective of the January Conference was to protect the gold reserves and restore the health of sterling. For that purpose it was agreed that the sterling area as a whole must balance its accounts with the non-sterling world and that individual countries should take steps as soon as possible to live within their total means. There has inevitably since been some188W contraction of trade. But the Conference was right in theory that for a lasting solution the sterling area must expand its earning power to the maximum possible extent, and this must be our objective.