§ LORD TERRINGTONasked Her Majesty's Government:
Whether they will now review the working of Exchange Control Regulations, in so far as they relate to what is commonly called the "25 per cent. surrender rule", since this rule was introduced as a temporary measure in 1965 and experience has shown that it 1269WA inhibits the efficient management of overseas investment portfolios which form an important part of the asset backing to the Country's dollar reserves.
EARL JELLICOEIt is the Government's policy to keep all exchange control rules under review in the light of the balance of payments situation. The rule referred to in the Question brings a gain to the official reserves at a rate which has been fairly steady over the last four years in the region of 250 million dollars a year. The disadvantage mentioned in connection with the management of overseas portfolios has to be weighed against this substantial continuing benefit to the reserves.