§ Mr. Tinnasked the Chancellor of the Exchequer what was the United Kingdom's net surplus on invisible transactions with Japan in 1972, 1973 and 1974.
§ Mr. DellThere are a number of major conceptual problems and practical difficulties in compiling bilateral estimates of invisible transactions with individual countries. These are explained in some detail on pages 56 to 58 of "United Kingdom Balance of Payments 1964–74" (the Pink Book) in the context of United Kingdom transactions with the European Communities. Other countries are likely to face similar problems in compiling estimates of their own transactions with the United Kingdom. They may be expected to encounter particular difficulties in estimating the size of United 567W Kingdom resident firms' net earnings—that is, the relatively small margins taken rather than the gross value of the transactions—in areas where they have an intermediary role or act as brokers. These would include, for example, the activities of the London banks in the Eurocurrency markets and of the Baltic Exchange in arranging the charter of foreign shipping on behalf of overseas principals.
UNITED KINGDOM ESTIMATE NET SURPLUS ON INVISIBLES TRANSACTIONS WITH JAPAN £ million 1972 1973 1974 Services (net)—transport, travel, Government and other services +60 +80 +100 Interest, profits and dividends (net) and transfers (net) +10 +35 +95 Invisible balance (net) +70 +115 +195