§ Mr. Maurice Macmillanasked the Chancellor of the Exchequer to what extent the hopes expressed by the Chancellor of the Duchy of Lancaster for lower interest rates were based on short-term factors such as the temporary retention in the United Kingdom of increased oil royalties due to be paid to OPEC countries and the investment of Middle Eastern money in the short end of the gilt-edge market.
§ Mr. DellMy right hon. Friend made clear in his Budget Statement that he would bring about a reduction in interest rates as soon as this was feasible. The recent easing of short-term interest rates was possible because our rates had become unnecessarily high compared with those overseas, although the factors mentioned in the Question may also have been helpful.