§ Mr. Gouldasked the Chancellor of the Exchequer (1) whether negotiations about the funding of the sterling balances will encompass the question of an appropriate rate for sterling over the period covered by any funding arrangement;
(2) to what extent a funding of the sterling balances will involve the United Kingdom in incurring further long-term debt in order to maintain sterling at a level higher than that fixed by the market;
(3) to what extent the decision not to allow the exchange rate to fall in line with the United Kingdom's continuing high rate of inflation will affect the problem of the sterling balances.
§ Mr. Robert SheldonThe discussions on a multilateral facility for the sterling balances have not focussed in any way on exchange rate policy, and the position in the latter respect remains as stated in the Letter of Intent to the IMF.