Oral Answers to Questions — International Liquidity

– in the House of Commons at 12:00 am on 29th June 1965.

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Photo of Mr Neil Marten Mr Neil Marten , Banbury 12:00 am, 29th June 1965

asked the Prime Minister what progress he is making towards increasing international liquidity.

Photo of Mr Harold Wilson Mr Harold Wilson , Huyton

I would refer the hon. Member to Answers to similar Questions given on 22nd June by my right hon. Friend the Chancellor of the Exchequer.

Photo of Mr Neil Marten Mr Neil Marten , Banbury

Would the Prime Minister agree that as the United States and Britain are simultaneously trying to correct their balance of payments difficulties this will create an urgent situation? Is he satisfied that the Government are treating this matter urgently? Could he tell us, if not now, then when the Chancellor returns from Washington, what the Government have in mind towards increasing international liquidity?

Photo of Mr Harold Wilson Mr Harold Wilson , Huyton

I have felt for a long time that this is a highly urgent matter, quite irrespective of the balance of payments problem of individual countries. I should be very glad to send the hon. Gentleman the lengthy and detailed speech I made on this more than two years ago. I do not need him, or any of those who are moaning, to tell me about the urgency of the problem of liquidity. So far as my right hon. Friend is concerned, the urgency is shown by the fact that he has had discussions with the French Finance Minister, who has taken an initiative in this field and will be in Washington later today, discussing this matter with the Secretary to the Treasury of the United States Government.

Photo of Mr Frederic Harris Mr Frederic Harris , Croydon North West

Does the Prime Minister appreciate that the most simple and immediate answer to this serious problem is to have a General Election as quickly as possible?

Photo of Mr Harold Wilson Mr Harold Wilson , Huyton

The hon. Gentleman is getting a little wide of the subject. So far as international liquidity is concerned, this requires—as the late Government found because they also took an interest in this matter—the agreement, in the first instance, of some 10 countries who have different views on this, and ultimately the agreement of 100 or so members of the International Monetary Fund. I do not, therefore, quite see the relevance of the hon. Gentleman's suggestion.