§ Mr. Patrick Jenkinasked the Secretary of State for Defence (1) if he is aware that the United States Government restricts to United States banks its arrangements for providing foreign currency for its over- 50W seas forces; and if he will restrict to British banks the Command Paymaster General for Singapore's tenders for similar purposes;
(2) why remittances of sterling, amounting to over £8 million in 1967 so far, to meet the expenses of Her Majesty's forces in Singapore and Malaysia have been made through a United States bank; whether he is aware that the bank in question has converted these funds into United States dollars; and what the drain on the sterling area's reserves has been in consequence.
§ Mr. ReynoldsFollowing a recent review, arrangements have already been made to restrict tendering to British and local banks. Without knowing the end use of any funds converted to American dollars, I cannot estimated the drain on the sterling area's reserves consequent on an American bank's having been successful in past tendering.