§ Mr. Cantasked the Chancellor of the Exchequer what were the economic and financial consequences for Great Britain of the growth in 1975 by £4,000 million in the net lending by banks in the United Kingdom to offshore centres.
§ Mr. Denzil DaviesThe increase during 1975 in the net foreign currency claims of United Kingdom banks on countries engaged in offshore banking was $4.2 billion, not £4 billion. Although London is the major centre for the international foreign currency borrowing and lending business that constitutes the Euromarket, this is essentially entrepot434W business mainly involving borrowing and lending operations with third countries. The increase registered in 1975 in net claims on offshore banking centres accordingly had little or no effect on the United Kingdom economic and financial position.