§ Mr. Rankinasked the Chancellor of the Exchequer what steps he proposes taking to counteract the outflow of reserves from this country to other countries; and if he will make a statement on the matter.
Mr. AmoryIf allowance is made for those months in which exceptional payments were made, the fall in the reserves in November was the first for two years, and should not therefore cause disquiet. The underlying balance of payments position is satisfactory, and the fall which has taken place no doubt largely reflects the movements of short-term funds in response to higher interest rates and tighter money conditions in other centres. I shall of course continue to watch the situation.