asked the Chancellor of the Exchequer what information he has received with respect to gaps in the exchange control which have arisen since July through Hong Kong and Tangier; and if he will make investigations to see what action is necessary.
While no system of exchange control can be completely effective, particularly in view of our position as bankers to the Sterling Area, I have no information that any gaps through Hong Kong and Tangier have arisen since July.
As we now know that there were huge losses of gold through the Kuwait gap, which went on for at least two years, will the Economic Secretary look into this matter throughly, in good time, so that if this kind of thing is going on, it can be stopped?
As I think the right hon. Gentleman knows, since he was in the Treasury, Hong Kong is a difficult case. It is a big entrepôt area, and so on. We are trying constantly to improve our controls but it is not easy to get watertight ones.