Sterling

Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 25th November 1969.

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Photo of Mr Joel Barnett Mr Joel Barnett , Heywood and Royton 12:00 am, 25th November 1969

asked the Chancellor of the Exchequer what discussions he has had with a view to ending the rĂ´le of sterling as a reserve currency; and if he will make a statement.

Photo of Mr Jack Diamond Mr Jack Diamond , Gloucester

My right hon. Friend has had no discussions on this topic.

Photo of Mr Joel Barnett Mr Joel Barnett , Heywood and Royton

Does it remain the Chancellor's intention to end all aspects of Britain's sterling reserve role? Has he had discussions, and has he come to any conclusion about any possible effect which this would have on invisible earnings, or does he believe that it would have no effect at all?

Photo of Mr Jack Diamond Mr Jack Diamond , Gloucester

My hon. Friend has not expressed the Chancellor's position fully or correctly. My right hon. Friend's position is that he would be content to see a reduction in this role in the long term, provided that two conditions were satisfied: first, that the interests of sterling holders were fully protected, and second, that the needs of world liquidity were protected.