asked the Prime Minister whether the speech made by the Chancellor of the Exchequer on 6th May, with regard to sterling balances, represents the policy of His Majesty's Government.

Yes, Sir; there is nothing new in this policy which, so far as sterling area countries are concerned, was explicitly set out in Article 10 of the Anglo-American Financial Agreement, approved by this House on 13th December, 1945.

But in view of the fact that only two months now remain before the Anglo-American Agreement will be brought into force, can the Prime Minister say, first, whether he is satisfied that His Majesty's Government will have concluded all negotiations by that time, and, secondly, when we may expect a statement from His Majesty's Government in concrete terms on this matter?

That is a question which ought to be addressed to the Chancellor of the Exchequer.