§ 56. Mr. John Smithasked the Chancellor of the Exchequer whether he will compensate, by way of grant rather than loan, British firms trading in commodities for losses caused by his refusal to permit a forward exchange market in other sterling area currencies.
§ 57 and 58. Mr. Tilneyasked the Chancellor of the Exchequer (1) whether, in view of the help given by other Commonwealth Governments to their commodity traders, he will receive a deputation from the commodity merchants of Great Britain;
(2) whether, in view of the fact that the suggested Bank of England loan to the merchants in commodities suffering the effects of devaluation will only postpone the immediate call on their capital, he will take further action to help merchants who in the past were responsible for large invisible exports.
§ 60. Sir J. Rodgersasked the Chancellor of the Exchequer if, in addition to the offer of the Bank of England to grant loans up to £5,000,000 to those traders who sustained losses in commodity trading with the non-devalued currencies of Nigeria, Tanzania and Uganda, he will now consider other and additional steps to help these traders, many of whom have lost heavily owing to devaluation.
§ Mr. Roy JenkinsPermission for forward exchange market facilities in sterling area currencies was not refused; no66W permission was, or is, required. I fully appreciate the foreign exchange earnings of the commodity markets, but the Government cannot accept liability to compensate traders who will sustain losses because they bought forward in local sterling area currencies for onward sale in sterling. I understand, however, that the Bank of England's loan offer still stands. I saw representatives of the traders concerned on 11th January, and explained the position to them.