The normal rules apply, with two significant differences. First, United Kingdom companies may transfer up to £1 million per project per year through the official exchange market to finance direct investment in EEC countries. Secondly, people moving to work in the EEC may transfer sufficient funds in official exchange to ensure their freedom to take up their employment.
Are not certain Community countries now operating even tougher restrictions on investment movement? Is it not also the case that we are committed, by the end of next year, to removing all remaining restrictions on the financing of direct investment? Can my hon. Friend say whether, if this programme in the transitional arrangements is to be adhered to, it will be done only on a reciprocal basis?
I am not aware of the particular examples that my hon. Friend is giving, but concerning the full liberalisation of direct investment, under the timetable this is something which we have to meet by 1st January 1975.
Is it not a fact that the official limit of £1 million per project per year is widely known in the City to be virtually a dead letter now? Will the hon. Gentleman confirm that the net flow of capital, on both the direct account and portfolio account, is overwhelmingly from this country into the EEC, and not the other way around?