asked the Minister of Overseas Development what proposals he is considering for the circulation of literature and periodicals to secondary schools and public libraries in the Caribbean.

I would like to see more British literature available for this purpose, but I doubt whether any such proposals could be given higher priority than the purposes to which the £750,000 of aid now available for school development in the Caribbean is being applied.

Does the hon. Gentleman realise that since the discontinuance of the Caribbean service there is a great dearth of this material in Caribbean schools and that we have a responsibility to ensure that young people in the Caribbean have this material? Will he think again about it?

I will certainly examine the point the right hon. Gentleman has made. The normal provision of textbooks and periodicals is regarded as a recurrent cost which we expect to be met by the Governments there.

Having returned from Jamaica a few days ago, may I draw my hon. Friend's attention to the need not only for literature and periodicals, but for the provision of a small film unit in each of the islands which could go out into the countryside and show films and film strips in villages? Such units would be greatly appreciated and would serve a very useful purpose.

I take note of my hon. Friend's researches.

asked the Minister for Overseas Development whether he has now approved the plans for the improvement of the Glendon Hospital, Montserrat.

Following discussions with the Chief Minister and Administrator of Montserrat in London last month, it was agreed that sufficient development aid should be available to permit the construction of a new hospital in a single phase rather than in a number of phases as hitherto planned. My Ministry is accordingly engaging hospital consultants under technical assistance arrangements to advise the Montserrat Government and their architects on the design of a hospital on this basis.

Is the Minister aware that the vacillation and change of policy of his Department has created great disappointment in Montserrat, that this two-phase hospital was first approved in January, 1965, that it was included in the tripartite economic survey of Eastern Caribbean in 1966, that it was approved again in October, 1967, and that then suddenly it was turned down as a two-phase project in October, 1968? This vacillation does great harm to our image in the Caribbean?

I do not accept the word "vacillation". There have been differences of opinion as to the best way of proceeding in connection with this hospital. I am sure that the right hon. Gentleman will agree that the prime consideration now is that a new hospital which is architecturally and medically suited to the needs of Montserrat will be provided.

As my right hon. Friend the Member for Thirsk and Malton (Mr. Turton) said, this has been dragging on for a long time. When will it be started?

It is hoped that designs will have been completed, a contract awarded and work started by the end of this year or early 1970 at the latest.

asked the Minister of Overseas Development what proposals he has for assisting the economic development of the Falkland Islands.

asked the Minister of Overseas Development whether he will make a substantial grant to the Falkland Islands to enable the islands to further develop local resources.

The current allocation under the Colonial Development and Welfare Act is £40,000 for each of the United Kingdom financial years 1968–69 and 1969–70. This is being spent mainly on the improvement of roads, Government housing and the telephone service. Technical assistance is also being provided mainly to help meet the costs of British expatriate staff. We have agreed to provide a team of five experts to undertake a study of the sheep and cattle industries and to assist with the completion of a new geological map of the islands.

In addition, is the expertise of the right hon. Gentleman's Department being used for survey work in the Falkland Islands Dependencies, which are believed to have considerable potentialities?

Yes, Sir; that is so. I should add that in relation to the population of the, islands, which is quite small, the aid I have described is on a fairly generous scale. I am sure that both sides of the House would wish to be aware of that.

Even so, would it not be better if far more aid were concentrated on people like the Falkland Islanders rather than on some of those countries which are so consistently ungrateful when they receive it?

I do not agree that there are countries which are consistently ungrateful. That is a misapprehension on the hon. Gentleman's part. As I pointed out in my previous Answer, the aid per head in the Falkland Islands is very high compared with our efforts elsewhere.

If the Government accept the suggestion for a wealth tax, made by the T.U.C., will my right hon. Friend see that a portion of the proceeds is earmarked for development in the Falkland Islands and all other under-developed territories?

The question of a wealth tax goes rather wide of my responsibilities, but I am always willing to consider the apportionment of extra taxes in the future to increase the overseas aid programme.

asked the Minister of Overseas Development what extra assistance he is giving to the Government of Botswana towards the cost of developing the new administrative capital at Gaberones and transferring all Government Departments from Mafeking.

I understand that the transfer of Government Departments from Mafeking to Gaberones is almost complete.

Does not my right hon. Friend agree that that does not by any means meet the full cost, and as, before independence, Bechuanaland was administered from Mafeking in South Africa, we had a special responsibility in this country for meeting the costs of building a new administrative capital?

We have provided substantial help towards the development of Gaberones, but it was agreed originally that the proceeds of the sale of the old Imperial Reserve in Mafeking should go partially to offset the budgetary aid given in that connection.

asked the Minister of Overseas Development what assistance he is giving to all parts of Nigeria.

asked the Minister of Overseas Development what is the level of aid and interest-free loans offered to the Federal Government of Nigeria by Her Majesty's Government.

The estimated expenditure on our aid programme to Nigeria during the current financial year is between £5 million and £6 million for capital aid and about £1·6 million for technical assistance.

Is my right hon. Friend aware that it was the opinion of the Animu Kano at the Commonwealth Prime Ministers' Conference that, besides medical supplies, it was important that basic educational supplies should be provided as soon as possible for schools which have been destroyed?

Some of our technical assistance is in education. I gather that my hon. Friend is referring to schools in certain areas which have been damaged during the fighting. We have not had any request directed specifically to schools in those areas, but we should sympathetically consider any request of that kind.

Will the right hon. Gentleman give a categorical assurance that none of this money is being used to buy arms from the United Kingdom to prosecute a genocidal war against Biafra?

Absolutely none of this money is being used for the purchase of arms.

Can my right hon. Friend assure the House that the grant of nearly £1 million to which he refers for the relief of war victims in Nigeria will not result in any cut in overseas aid expenditure elsewhere in the world or in this part of West Africa?

The sum of money concerned has come from within the total provided for overseas aid this year. It was possible to do this without making cuts because of some under-spending and some slower development projects both in Nigeria and elsewhere.

In calculating the amount of emergency aid which the right hon. Gentleman mentioned, did he attempt to estimate the daily number who are dying and who will die unless the war is brought to an end? Was the sum based on such an estimate?

It was ultimately based on that; it was based on the requests made by the International Red Cross, which is receiving money also from other countries officially and from voluntary contributions both from Britain and elsewhere. Clearly, those estimates are based on the actual needs of the people in the area concerned.

As Biafra is still an integral part of Nigeria, can my right hon. Friend say what proportion of this sum will be spent in that area which has been largely ravaged as a result of the dreadful civil war?

I take it that my hon. Friend's question relates to the £970,000 for emergency relief. That money is being spent in Biafra and also to some extent in parts of the territory under Federal control which are part of the war zone. My original Answer gave total figures for aid to Nigeria, and most of that larger total is being spent in areas away from that part of the country where the fighting is going on.

asked the Minister of Overseas Development what assistance he is giving to Guyana.

£2·4 million is available during the current financial year, mainly as loan. A further £3 million will be available in loans over the next two years towards sea defence works. We expect also to provide loan assistance for other projects, as well as continuing help for the university and technical assistance.

Can we do more to participate in the development of hydroelectric power?

As my original Answer indicated, it is likely that most of our aid in the next two years will be taken up in helping sea defence works. But we know of projects in connection with hydro-electricity, and we should not rule out help in this respect, subject to the priorities which have to be accorded to the other projects which I mentioned.

asked the Minister of Overseas Development what proposals he has to increase the number of Commonwealth students entering British universities; to study for first degrees and other equivalent courses.

None, Sir. Most Commonwealth countries are now able to provide such courses in their own institutions. The policy of my Ministry is not to finance education and training in this country when suitable local facilities are available.

Does not my hon. Friend agree that some of the facilities available are not up to the standard of our own university courses, and would he not further agree that this is a valid way of helping under-developed countries to improve their own standard of life, instead of continuing the immoral policy of bringing their trained people here?

It is a question of how most economically to spend the finance which is available, and it is well established that the best way is to provide post-graduate training in this country and to assist with first degree courses in the countries concerned.

I accept what my hon. Friend has said, but will he none the less make representations to the Secretary of State for Education and Science to try to persuade the universities to interpret as liberally as possible the new regulations regarding fees to be charged to overseas students?

Perhaps my hon. Friend will put a Question down to my right hon. Friend the Secretary of State for Education and Science.

asked the Minister of Overseas Development how much money was repaid by developing countries to Great Britain during the last 12-month period for which figures are available.

In 1967–68, repayments of aid loans from developing countries were £31·1 million and interest payments £28·3 million.

Will the Minister arrange for the figures to be circulated among those who use foreign aid to stir up racial prejudice? Second, may we in future have a little more emphasis on loans and a little less emphasis on alleged gifts?

The figures are given in statistics produced by my Department, but we have under consideration at the moment advice which we were given by the Select Committee on Estimates on the need to present the total picture more clearly. I expect to present a White Paper to the House on this matter and other recommendations of the Select Committee in a few weeks.

asked the Minister of Overseas Development to what extent oil has been found in Tonga; and whether his Department will consider giving advice and aid with a view to its exploitation.

Several minor seepages of oil have been observed in Tonga since last September. It remains to be seen whether oil is present in commercial quantities.

I am grateful to the Minister for his reply. If oil is found in sufficient quantities, will he see that the local people are trained so that they have more employment? There is a great unemployment problem in the island at present.

Talks took place recently within my Department between officials and representatives of the Government of Tonga on the kind of technical assistance they require at present for the immediate exploration of the deposits and for their future negotiations with the companies likely to do the work. We shall keep in touch with them as the situation develops.

asked the Minister of Overseas Development how much aid each of the remaining 20 colonies and dependencies in the Commonwealth is receiving from Her Majesty's Government.

With permission, I will circulate the information in the OFFICIAL REPORT. The estimated total of £14·3 million includes financial aid, technical assistance and investment by the Commonwealth Development Corporation.

As these countries are particularly loyal to the idea of the Commonwealth, will the Minister see that in future they get their fair share of aid so that they can develop on lines similar to those of the countries that are already independent?

Yes, Sir. Provision for the remaining dependencies has been increasing. It was £9·6 million in 1966–67, £12·8 million in 1967–68, and £14·3 million in the current year.

Has my right hon. Friend taken note of the recent remarks of the Prime Minister of Singapore about ensuring that aid given to developing countries by Britain goes to the right places and is used for the right purposes?

Yes, Sir. I not merely took note of the remarks but heard the speech at the Commonwealth Prime Ministers' Conference in which the remarks were made. They have been taken badly out of context in Press reports. The Prime Minister of Singapore was speaking of the need for greater self-reliance in developing countries, and I am sure that we would all agree with this. We take the greatest care to make sure that all aid provided by Britain is used for the purposes for which it is pro- vided, and it is not true that any of our aid goes for the provision of luxuries for Ministers or for any other improper purpose.

Does the right hon. Gentleman recognise that in the case of the large flourishing Colony of Hong Kong, it is investment that is called for and is likely to show quick results? The United Kingdom Government can do a great deal to encourage this, for example, by helping over the proposal to enlarge the runway of the airport?

In all the developing countries there is a need for both private investment and aid on a Government-to-Government basis. The exact ratio varies from one country to another.

asked the Chancellor of the Exchequer what steps he has taken in the last two months to provide the conditions for a reduction in unemployment.

The measures that my right hon. Friend announced on 22nd November will help to provide the conditions to which the hon. Gentleman refers by accelerating the improvement in the balance of payments.

Is the right hon. Gentleman aware that for the past 20 months unemployment has been above the 500,000 mark, and that the export-led growth has had only a marginal effect on the level of unemployment? Does he propose any further steps to deal with unemployment?

What I propose to do is to direct the hon. Gentleman's attention to the substantial fall in unemployment since August in particular. It has fallen by as much as 65,000 during that period.

Would not it help to reduce unemployment in Aberdeen if we decided to pay airport porters there the same wages as are paid in Heathrow for handling the same type of luggage?

That is a very interesting observation, but it is not directly related to the Question on the Order Paper.

asked the Chancellor of the Exchequer if he will make a statement of the balance of payments for the second half of 1968 and the first half of 1969.

Figures for the balance of payments in the fourth quarter of 1968 will be published in mid-March. An estimate for the first three quarters was published on 12th December. I cannot add anything to my right hon. Friend's earlier forecasts for 1969.

In view of the very disappointing recent trade figures, does my hon. Friend agree that it is time we went for the greatest degree of certainty possible today? Will he re-examine the Treasury's obsessional fear of the use of import quotas?

No, Sir. The recent trade figures, far from being disappointing, are encouraging because of the underlying improvements in our situation which are evidenced. I am not authoritative on any obsessional fears in the Treasury, and I do not propose any therapeutic action about them until I am more satisfied of their existence.

The Finance Secretary referred to the Chancellor's earlier forecast. Does he mean the White Paper forecast issued at the time of the Budget or any later observations?

I mean the aggregate of my right hon. Friend's forecasts.

asked the Chancellor of the Exchequer what plans he has for a meeting with the United States Secretary of the Treasury.

My right hon. Friend has no such plans as yet, but he is looking forward to early contact with the new United States Administration.

Whilst I understand that it is not possible to formulate very closely the kinds of discussion that can be undertaken, does not my hon. Friend consider that it will be necessary to take up the worldwide monetary problem at the earliest possible date? Can he give any indication of the sort of timing that might be possible in this connection?

I understand my hon. Friend's anxiety that the discussions should take place soon and be wide-ranging. I can assure him that my right hon. Friend will have such discussions as soon as it is convenient to do so, and that they will cover all the kind of topics that he has in mind and in which he is interested.

Will the hon. Gentleman stress to the Chancellor that there can be no solution to problems of international illiquidity without a great increase in international trade, and that to seek that desirable end should be our first objective, coupled with a continuation of policies of Kennedy liberalisation of trade?

I can assure the hon. Gentleman that my right hon. Friend will certainly stress the priority of increasing international trade and continuing its healthful development. But I do not think that illiquidity problems are solved by that. Such increases raise liquidity problems, which must be dealt with in order to enable the healthy development that the hon. Gentleman wants to see.

asked the Chancellor of the Exchequer whether he will seek to exempt from estate duty the family house when it is left to the surviving widow or widower.

I have noted the hon. Member's suggestion.

Does the right hon. Gentleman agree that many estates today consist of a family house with a small amount of money, which incurs Estate Duty which it may be difficult for a widow to pay? Does he agree that it would be sensible to treat the family house for Estate Duty purposes in the same way as it is treated for Capital Gains Tax purposes, namely, by exempting it?

The hon. Gentleman will know that there is a great distinction to be drawn between Capital Gains Tax and Estate Duty, but I listened carefully to what he said.

Will my right hon. Friend inquire what the Opposition mean by a family house, because hon. Members opposite can mean something very different from what we mean on this side of the House.

In view of the inflation of house prices, will the right hon. Gentleman consider raising the exemption of the first £5,000 fixed many years ago to a more realistic figure to help smallish estates?

On all these topics all I can say is that I am grateful to the hon. Gentleman for letting me know what he has in mind.

asked the Chancellor of the Exchequer if he will reduce Purchase Tax and Excise Duties by 10 per cent. on 1st January, 1970.

I am afraid the hon. Member must wait and see.

Will the right hon. Gentleman give serious consideration to the proposal? Is it not a fact that owing to the continual increases in taxation imposed by the present Government every new increase now merely encourages spending in anticipation of the next? Does not he think, therefore, that a promise of a reduction might lead to a reduction in consumer spending meanwhile, or does he simply think that it would not be believed?

I will, of course, consider anything the hon. Gentleman puts to me. It must inevitably be the case that certain conclusions are drawn if taxes go up regularly, and that other conclusions will be drawn if they come down from time to time.

asked the Chancellor of the Exchequer what is his latest estimate of the percentage increase in public sector expenditure in money terms during the current year.

Figures in money terms are not yet available but as my right hon. Friend said in reply to my hon. Friend the Member for Caerphilly (Mr. Fred Evans) on 2nd December, the latest estimate of public expenditure for the current year at 1968 Survey prices is £15,718 million, which is an increase of 4¾ per cent. as in Cmnd. 3515.

How does the right hon. Gentleman reconcile the Chancellor's constant reiteration that public spending growth is on target with the enormous increase in local authority borrowing announced this morning? Is it not about time that the right of local authorities to borrow at an effective rate of 4½ per cent. for housing should be rescinded? What does Mr. Goode have to say about this?

If the hon. Gentleman wants a serious answer to a question about local authority housing, perhaps he will be good enough to put one down. All matters of local authority expenditure were taken into account for the estimate I have just given.

Does my right hon. Friend agree that many of the suggestions by hon. Members opposite for cutting public expenditure would mean this country eating its seed corn, for which it would pay very clearly in future?

I will bear that in mind. My hon. Friend will also recollect that most of the suggestions made by hon. Members opposite are for increases in public expenditure.

Are the figures given by the right hon. Gentleman consistent with those in the Financial Statement?

Completely consistent.

asked the Chancellor of the Exchequer what was the net increase in National Savings in 1968; and what were the comparable figures in 1966, 1964 and 1962, respectively.

Provisional figures show that the level of National Savings outstanding including accrued interest rose by £70 million in 1968. The corresponding figures for 1966, 1964 and 1962 were a fall of £30 million, and rises of £357 million and £238 million respectively.

Does not the hon. Gentleman agree that the figures are disappointing in present circumstances? Can he give an assurance that soon there will be a new initiative to encourage National Savings—in particular, a "save-as-you-earn" scheme?

Naturally we have a special interest in the success of the National Savings Movement, but our paramount interest is in the total of savings, which has held up very well. I can give the hon. Gentleman the assurance he asks for in the latter part of this supplementary Question.

asked the Chancellor of the Exchequer what is the total of National Savings, including accrued interest, for the year to date; and what percentage change this represents from the corresponding period for the preceding year.

£70 million net during the year to 31st December, 1968. This is about 46 per cent. less than the net receipts during 1967.

As this covers a period when average incomes had been rising substantially—certainly faster than the guidelines indicated by the prices and incomes policy—to what reason does the right hon. Gentleman ascribe the reluctance of the British public to lend their money to the Government?

It is a gross distortion of the true position to say that an additional loan of £70 million this year by the British public to the National Savings Movement on top of the vast sums already there can be described as a reluctance to lend money to the Government. There is certain to be a flow between the National Savings Movement and other savings media. This is inevitable in our kind of society.

Since the figure is one-fifth of what it was in 1964, does it not reflect a reluctance?

No, Sir. It can equally be said that there has been an increasing desire on the part of the public to invest in other media which have been presented to them in a particularly attractive way. This is one of the reasons why my right hon. Friend is examining different methods of encouraging savings in different ways.

asked the Chancellor of the Exchequer what consideration he has given to the report on the case for capital taxes, a copy of which has been sent to him, which recommended the introduction of a new wealth tax under the title of the gratuitous enrichment tax.

I am aware of this pamphlet and consideration is of course given to its recommendations as to the many other proposals for tax reform which we receive, particularly at this time of year.

Would not the right hon. Gentleman take this opportunity to reject the proposals by the Fabian Society for a gratuitous enrichment tax, particularly as most taxpayers have been gratuitously improverished by the Government over the last four years? Will he attempt to reconcile the statement by the Prime Minister on television last night—that savings should be encouraged—with the proposals which regularly come from the Labour Party for the introduction of another wealth tax which would be a penalty upon the results of savings?

I confirm what my right hon. Friend the Prime Minister said last night and what my hon. Friend the Financial Secretary has just said about our interest in savings. As for the gratuitous enrichment tax, as a Treasury Minister I am always interested in the Treasury being enriched, even gratuitously.

Does not my right hon. Friend agree that, in this country and elsewhere, disparities between the very wealthy and the very poor are growing rather than narrowing? Is not some readjustment of property, by capital taxation or otherwise, necessary to redress that tendency?

As my hon. Friend will recognise, my right hon. Friend's Budgets include an element of adjustment to take account of social needs.

asked the Chancellor of the Exchequer if he will make proposals for a more flexible system of exchange rates for sterling.

No, Sir.

Will the right hon. Gentleman at least bear in mind the substantial and increasing advocacy of a more flexible system of exchange rates for sterling and confirm that he has now a sympathy which at least is bordering on conviction?

I will confirm that I will bear in mind all considerations but I would add that I would need a great deal of convincing that we should abandon the basic stability in exchange rates which underlies the Bretton Woods system and which has worked very well for 20 years.

asked the Chancellor of the Exchequer by what amounts the exchange rate between the £ sterling and the United States dollar declined in each of the periods up to the present day since 1913, 1929, 1939 and 1947, expressed as an average annual movement at compound rates.

On the basis of the parity—or for 1939, the fixed rate—at the end of each of the four years in question the average annual downward movement to the end of 1968 at compound rates was 1·28 per cent., 1·80 per cent., 1·77 per cent. and 2·44 per cent.

Are not these figures so small as to prove that, if we had had a flexible system of exchange rates for sterling during this period, the annual variations would have been so small as to be quite manageable?

The figures can be taken to prove anything hon. Members wish them to prove. Without these flexible rates, the world has prospered exceedingly, as my right hon. Friend has just said.

Is it not better to have no decline in the £ at all as compared with the dollar? Could that not be achieved if these very large adverse visible trade balances were put on one side for a time? Would not the hon. Gentleman agree that we had the biggest adverse trade balance in 1968—as big as that of 1951?

Changing parities as between one country and another are, or should be, a function of the development of world trade. One cannot argue for the need for reasonable flexibility in these parities on the one hand and, on the other, urge that they should never change in a manner adverse to one particular country.

asked the Chancellor of the Exchequer if he will appoint a new Chairman of the National Savings Committee.

No, Sir.

Bearing in mind that the present Chairman has made damaging and inaccurate comments, and since, presumably, that is not his task, would not my hon. Friend reconsider his reply?

No, Sir. Chairmen of savings committees are chosen for their general ability to further the interests of the National Savings Movement and not for their ability to make what would be to my hon. Friend satisfactory extemporaneous answers on television.

Is it not the case that the present Chairman has rendered great service to the Government and the nation? Is he not of much more use in obtaining increases in savings than the sort of dumb stooge hon. Members opposite apparently want?

I will content myself by saying that the Chairman has given the Government excellent service as Chairman of the National Savings Movement.

asked the Chancellor of the Exchequer what provision was made in his budgeting plans for 1968–69 for the transfer of £200 million from the National Insurance (Reserve) Fund to the National Insurance Fund; and what steps he will take to offset the inflationary effects resulting from the disbursement of this money by the National Insurance Fund.

None, Sir. As my right hon. Friend the Minister of State, Department of Health and Social Security, made clear to the House on 12th December last year, this transfer makes no difference to the amount of money to be paid out in benefits, and will have no inflationary effect.

Will not a number of competent observers, including the I.M.F., conclude that this is a way in which the Government have found it possible to increase expenditure without contravening the Chancellor's Budget statement that he was to limit capital drawings?

No. The hon. Gentleman, if he will forgive my saying so, has completely misunderstood what has happened. It does not have any effect on public expenditure, it is merely like transferring money from one's deposit account to one's current account to put one's current account in funds.

asked the Chancellor of the Exchequer what studies he has made with a view to bringing the direct and indirect levels of taxation in the United Kingdom into line with those of other industrial countries.

Although there are variations in the levels of individual taxes, the general levels of direct and indirect taxation in the United Kingdom are not out of line with those of other industrial countries.

How are we to get the level of investment and savings that we need unless we reduce direct taxation and stop attacking capital? Is this not the example of other countries?

No, I do not think it necessarily is. It is important to achieve the objectives that the hon. Gentleman has in mind, but it by no means follows that the methods he advocates are the correct ones. The overall burden of taxation is higher in France and in Germany than in this country. The proportion of direct taxes appears to be somewhat higher in the United States and Japan.

As my right hon. Friend is always being accused of attacking capital, would he at some time list in the OFFICIAL REPORT the amounts of subsidy, in one form or another, that this Government have given to private enterprise over the last four years?

The sums are very substantial. If my hon. Friend cares to put down a Question I will be glad to answer it.

asked the Chancellor of the Exchequer (1) by what authority British investors overseas are not allowed to sell forward currency of the country in which their money is invested;

There are no restrictions on sales by United Kingdom residents of currencies of the Scheduled Territories. United Kingdom residents other than authorised dealers require permission under the Exchange Control Act 1947, to sell foreign currencies, other than to authorised dealers whose operations are conducted in accordance with directions under the same Act. Permission is in fact normally given to traders and others who show evidence that foreign currency receipts are due to them within a reasonable period.

Does this enable either an investor in a foreign country or an exporter who is owed money on credit in a foreign country to hedge against inflation by selling that currency forward, according to his judgment?

Yes, within a reasonable period, which is normally taken to be six months, he can do so. If he gives evidence that he is expecting a receipt either by way of exports or disinvestment, he can cover himself by selling forward.

Does this not demonstrate the great weakness, from the point of view of the liberty of the subject, which is inherent in the whole of our exchange control regulations? Would the Financial Secretary undertake to look at this, with the possibility of introducing new legislation which would make all the regulations and controls explicit, rather than that they should operate negatively, by way of a dispensation from a blanket prohibition?

If the hon. Gentleman will carefully read what I have said he will see that it proves the opposite, namely, that within the necessary restrictions the greatest flexibility is maintained so as to ensure that there is reasonable protection available to an individual, to cover his currency position.

Would there not be even greater limitation on the liberty of the individual if we did not have exchange controls, and allowed limitations of growth, and the subsequent growth of unemployment?

Yes.

asked the Chancellor of the Exchequer to what extent he consults Scottish banks in matters involving Government financial policies.

Close contact is maintained through the Bank of England with the Scottish banks on financial matters which may be of concern to banks in general and to Scottish banks in particular.

Would my right hon. Friend not agree that there are strict limitations upon any consultations that can take place with the Scottish banks, because of agreements and amalgamations of banking interests on a United Kingdom basis?

There are no restrictions, unless my hon. Friend is referring to the natural restriction of geographic distance. Consultations take place regularly.

Since neither shortage of labour nor inflationary pressures are prominent problems in Scotland, would the Minister not agree that directives to restrict finance should not be issued to Scottish banks?

No. This is a matter which affects the United Kingdom economy as a whole.

asked the Chancellor of the Exchequer if he will give details of the discussions he has had about variation of exchange rates; and if he will make a statement.

The only such discussions have been in connection with the Bonn meeting of the Group of Ten, about which I reported to the House on 22nd and 25th November.

Would my right hon. Friend agree that one of the major causes of uncertainty at present is that certain major currencies are out of line? While understanding his reluctance to have a new and large Bretton Woods type conference again, would he not consider the possibility of holding a meeting with a few of the major countries involved to discuss these very important matters?

We have had such a meeting, in November. I have certainly nothing to add beyond what I said when reporting on that meeting.

asked the Chancellor of the Exchequer what is his estimate of the cost of extending the allowance created by Section 17 of the Finance Act, 1960, to all persons who have resident with them a dependent relative over the age of 70 years or suffering from mental or physical infirmity.

I am afraid that information on which to base an estimate is not available, but the amount would be comparatively small.

If the amount is comparatively small would the hon. Gentleman bear in mind that the cost of trying to keep these people on a reasonable standard of living is growing every day? If it is only a small sum, can we have an assurance that they will be given better treatment in the next Finance Bill?

I am afraid that I cannot give the hon. Lady any assurances as to what will be in the next Finance Bill.