asked the Chancellor of the exchequer whether His Majesty's Government are satisfied with the results of the preliminary discusssions with Egypt, India and Iraq for the settlement of sterling balances held by those countries; and when these discussions will be followed by formal negotiations.

These preliminary discussions have been useful. The date of formal negotiations has not yet been fixed.

Could the right hon. Gentleman explain the use of his word "useful"? Could he say what use has been obtained from it, since all the countries concerned have said that the negotiations have broken down? Can he give us any assurance that His Majesty's Government are pursuing a tough policy, and are not just running from a just settlement of these obligations?

They have been useful so far as the holders of sterling balances have been made acquainted with the view of His Majesty's Government and, of course, the reciprocal process has taken place. There is now a period of reflection, and then formal negotiations will be restarted.

Is it possible for the right hon. Gentleman to tell us what His Majesty's Government point of view is, as well as that of other parties?

Not beyond what I have already said at various times.

asked the Chancellor of the exchequer what coun- tries counterclaims against sterling balances for war services rendered by this country have been submitted; and what is the total of such claims submitted.

I should prefer, for the present, not to make any further public statement regarding these negotiations.

While appreciating that answer, may I ask the right hon. Gentleman if he will tell us whether this matter is very much in the mind of His Majesty's Government, and that the word "must," which was given in an answer to me the other day, will be emphasised on all occasions?

I can say, "Yes," to both questions.