§ 70. Mr. E. Johnsonasked the Minister of Fuel and Power whether he will make a statement in regard to the financial aspects of the arrangement under which the United Kingdom has been able to buy United States coal for sterling.
§ Mr. Joynson-HicksYes. The United States Government provide the dollars required for this transaction up to a maximum of $3. 97 million. Her Majesty's Government simultaneously place the sterling equivalent to the credit of the special account opened in pursuance of the Economic Co-operation Agreement between the Governments of the United Kingdom and the United States of 6th April, 1948.
The United States Government wish the bulk of the sterling proceeds of this transaction to be transferred to a joint account held by the Jordan and United States Governments, known as "The Jordan-United States Economic Assistance Joint Fund," which will be used to give United States economic aid to Jordan. The United States Government further desire that any small remaining part of these sterling proceeds should be used for payments made at their request for non-dollar freights on aid cargoes for third countries.
As none of these payments out of the special account is covered by Section 2 (2) of the American Aid and European Payments (Financial Provisions) Act, 1949, it will be necessary for them to be authorised by Vote of Parliament and in due course Supplementary Estimates will be presented for this purpose. In the meantime it is proposed to make the payments out of the Civil Contingencies Fund.