§ Mr. Cantasked the Chancellor of the Exchequer on what grounds, and for what reasons, he has authorised the Bank of England to waive the premium rule for property development companies investing abroad, in view of the fact that this practice brings a loss to the United Kingdom's reserves.
§ Mr. Denzil DaviesProperty development companies are subject to the same exchange control rules as apply to any other United Kingdom resident investing abroad. Such investment has to be financed in ways which minimise, and in most cases eliminate, the initial cost to the reserves. However, when any overseas investment is liquidated and the proceeds are not enough to meet the foreign currency claims, the balance may in certain circumstances be met by the United Kingdom parent company through the official foreign exchange market.