§ Mr. HunterTo ask the Secretary of State for Foreign and Commonwealth Affairs what is his assessment of the implications of Swaziland's departure from the Rand monetary agreement and participation in the tripatrite monetary area agreement.
§ Mr. MellorThe Rand monetary area agreement was renogotiated in April 1986 and became the common monetary area agreement or Tripartite monetary agreement. Under the terms of the new agreement Swaziland has been free to conduct an independent exchange rate policy. In practice, however, she has not felt the need to pursue such a policy and the Swazi currency has remained pegged at par with the rand. The new agreement also frees Swaziland from the need to place rand holdings in a special account in South Africa against the issue of Swazi currency notes and coins. This gives Swaziland flexibility in the management of foreign reserves and in the control of monetary policy.
§ Mr. HunterTo ask the Secretary of State for Foreign and Commonwealth Affairs what assessment he has made of the implications for United Kingdom policy on the maintenance of stability in southern Africa of the Republic of South Africa's policy towards Swaziland.
§ Mrs. ChalkerWe shall continue to urge South Africa to co-operate peacefully with all its neighbours and to refrain from the use of force.
§ Mr. HunterTo ask the Secretary of State for Foreign and Commonwealth Affairs what representations he has made to, or received from, the Swaziland Government with regard to Swaziland's relations with the Republic of South Africa.
§ Mrs. ChalkerNone.