§ Mr. AllenTo ask the Chancellor of the Exchequer if he will make a statement on the implications of the decline in exports of goods and services in constant price terms between the second and third quarters of 1990 for the level of the exchange rate within the exchange rate mechanism.
§ Mr. MellorIt has no implication. Imports fell by more than exports and the balance of trade in goods and services at current prices improved by £1.2 billion.
The Government have made it clear beyond question that they have entered into the commitments of the exchange rate mechanism knowingly; it will do whatever is necessary to maintain sterling's position in the exchange rate mechanism.