HL Deb 10 August 1972 vol 334 cc1426-7WA
LORD TERRINGTON

asked Her Majesty's Government:

Whether in view of the decision to exempt portfolio investment in the overseas sterling area from the 25 per cent. surrender rule, they will now consider granting the same exemption to portfolio investment in the non-sterling area, bearing in mind:

  1. (a) that this rule was introduced as a temporary measure in 1965; and
  2. (b) that experience has shown that it inhibits the efficient management of overseas investment portfolios which form an important part of the asset backing to the country's dollar reserves and makes a significant contribution to invisible exports.

EARL JELLICOE

No change is at present contemplated in the rules governing investment by United Kingdom residents in foreign currency securities. The exchange control arrangements for transactions with the overseas sterling area were limited to what was necessary for the immediate purpose of checking fresh speculative outflows.