asked the Chancellor of the Exchequer why he refused to permit United Tobacco Companies (South) Limited, incorporated in the Union of South Africa, to offer to shareholders in the United Kingdom one new share for three held at a price substantially below market value.

The decision was based on the advice of the Capital Issues Committee, who were not satisfied that the proposed issue would be in the national interest.

What possible harm could have been done to the United Kingdom economy had this offer been made and accepted?

It is not the practice to disclose the reasons on which the advice of the Capital Issues Committee is based in such cases.