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?
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.