asked the Minister of Overseas Development (1) if he will hold consultations with the Governments of Lesotho, Botswana, Swaziland, Malawi and Zambia with a view to the setting up of a development division of his Department in this area of Africa;

asked the Minister of Overseas Development what action he is taking to increase the number of aid administrators and specialist advisers from his Department serving overseas.

Aid management is part of the British representational function overseas which is now being examined by the Review Committees on Overseas Representation. I would prefer to await its report before considering the need for possible additional development divisions or the appointment of additional officers in British High Commissions or Embassies.

Will the Minister kindly bear in mind at this review that the calibre of our development experts in this frontier area on the borders of the Union of South Africa is of importance, and that the best of our experts should be available to all the countries in that area?

I agree with the hon. Gentleman about the importance of having people of very high calibre in charge of our aid management in that area. It is a question of how we organise this, and, on that, I should prefer to await the Report of the Committee under Sir Val Duncan.

But would my right hon. Friend not agree that the Estimates Committee's Report on this subject shows the importance of specialised divisional officers in the area who are specialists in aid management and not concerned with the day-to-day administration of embassies or high commissions?

Yes, Sir. There are, of course, in that area officials who specialise in aid management. The question is whether there is a case for organising them in a new development division or whether they should continue to do their work as part of the high commissions in the areas concerned.

Is there not a danger, as the Select Committee pointed out, that as time goes on fewer of the officials in the right hon. Gentleman's Department will have practical experience of aid management overseas? Is there not a distinct merit in the suggestion of my hon. Friend the Member for Dorking (Sir G. Sinclair) in Question No. 2?

This is one of the factors which I shall certainly take into account, although the hon. Member will recognise that we also want aid management regarded as one of the normal functions of a high commision or embassy and that it should be part of the work, therefore, of career diplomats as well as people specialising in it who are seconded from the Ministry or otherwise making a career in the aid field.

asked the Minister of Overseas Development if he will make a statement about aid for Anguilla.

With the agreement of the Government of St. Kitts-Nevis-Anguilla about £55,000 was expended on development grants to Anguilla during the period of the interim settlement. The provision of aid automatically ceased when this settlement came to an end last month.

I am much more interested in the future. What guarantee is there that the aid destined for Anguilla is not blocked by and in St. Kitts? Second, why was advice given to withdraw the V.S.O.s from Anguilla, since most of them have now returned?

The hon. Gentleman will recognise that in aid matters we are dealing with the constitutional Government. We cannot deal direct with Anguilla. It is certainly my hope that it will be possible to resume our aid programme, but it depends on the constitutional position. This is a matter for my right hon. Friend the Secretary of State for Foreign and Commonwealth Affairs. On the question of V.S.O.s in general, our policy has to be in line with general aid policy—not always, but generally.

asked the Minister of Overseas Development whether he will propose to the Federal German Government that this country and the Federal Republic should collaborate in the provision of overseas aid.

We already work closely with the Federal German Government, and with other donors, on many aid questions in the various international bodies of which we are both members.

But would not my right hon. Friend agree that, apart from the obvious advantages of continuing and expanding this type of collaboration, there are, in principle, advantages in this sort of multilateral or partly multilateral and partly bilateral arrangement for channelling aid on the pattern of the European Development Fund?

Yes, I agree that there are great advantages in co-ordination between aid donors, but, more generally, this should take place not just between two individual donors but between larger groups, like the Development Assistance Committee of the O.E.C.D., the World Bank, the U.N. Agencies or the various other ways open to us.

asked the Minister of Overseas Development whether he will take the initiative in proposing to the United Nations specialist agencies that comprehensive studies be undertaken of the economic potential of each of the great river systems within the developing world.

Studies of this kind can, of course, be of great value but the U.N. Development Programme already includes 33 large projects involving studies of river basins and another 33 studies in the fields of water power, hydraulics and meteorology. I am sure that the U.N. Agencies will take any further initiatives which they think are required.

While accepting that valuable work is being done, a notable example is the Mekong Valley in Southern Asia—would my right hon. Friend not agree that this sort of work is particularly important because it encourages collaboration between the riparian States and that, without this, there is a danger of fragmentation of aid programmes?

Yes, Sir, but for the very reason which my hon. Friend mentions—because there are sometimes different national States in the region of major rivers and because of relations between those States—it is not possible to launch effective development. It is a question of timing the initiatives, and this has been done with notable success, for example, on the Indus and the Mekong, which my hon. Friend mentioned. I will certainly watch for further opportunities of this kind.

asked the Minister of Overseas Development what is the total amount of aid being given to Singapore in the current financial year; and how much is envisaged in the next two years.

I estimate that in the current financial year Singapore will receive in normal and special British aid a total of £5·5 million, including £2·8 million for defence aid. This total is expected to increase to between £10 million and £11 million in each of the financial years 1969–70 and 1970–71.

What saving does the right hon. Gentleman think there will be on the withdrawal of defence from Singapore, if aid is to cost this much more?

The overall saving from withdrawing the forces from Singapore will be much larger than the total of special aid to Singapore, which is related to the same process.

asked the Minister of Overeas Development what progress has been made in carrying out the recommendations in the Tripartite Economic Survey of the Eastern Caribbean through the Regional Development Agency or in other ways.

The Regional Development Agency, meetings of which are attended by representatives of the Governments of Britain, Canada and the United States of America, has been set up. Negotiations are still proceeding on the establishment of the Caribbean Development Bank. Through the British Development Division the British aid programme in the Eastern Caribbean has been concentrated and reorientated in line with the development priorities identified by the tripartite survey.

Would the hon. Gentleman not agree that that is not much progress, as the survey was presented nearly three years ago?

I think that we are making progress, but the hon. Gentleman will recognise that, in dealing with a considerable number of Governments, differences do arise. This, for example, has happened in the case of the Development Bank, but, given that, a good deal of satisfactory progress has been made. For instance, there have been over 90 technical assistance assignments in line with the tripartite survey recommendations, and other achievements.

asked the Minister of Overseas Development what study he has made of the pamphlet, Nigeria Looks Ahead, a copy of which is in his possession, with reference to the supply of educational equipment to areas which have suffered from military conflict.

I have read this pamphlet, which is published by the Federal Ministry of Information of Nigeria. We have not yet had any official requests for supplies of educational equipment for areas which have suffered from military conflict, but, as I told my hon. Friend on 21st January, we would consider any such requests sympathetically.—[Vol. 776; c. 223.]

Could there be discussions with Alhasi Aminu Kano and other Ministers on this point?

The proper procedure is for contacts between the British High Commission in Lagos and the authorities there. My Department has been in touch with our High Commission recently, drawing its attention to this matter and telling it that we are prepared to consider any request for aid sympathetically.

Can my right hon. Friend confirm that there must be at least four million Ibos in the areas now administered by Federal forces? Since they are living peacefully and settling down with their fellow Nigerians, is it not important that we give aid of this kind?

I have said that we are prepared to give aid to help the rehabilitation of educational establistments in the areas where the fighting has taken place. We must, of course, await official requests for this from the Nigerian authorities.

asked the Minister of Overseas Development how many of the volunteers from Great Britain, serving under the British Volunteer Programme at the present time, are from the Principality of Wales; and what steps are being taken to recruit volunteers to this service and to make known, within the Principality, the service that can be rendered through this scheme.

There are at present 58 graduate and qualified volunteers and 14 cadet volunteers from the Principality of Wales serving overseas; and increase of 3 over last year. Recruitment of volunteers in Wales, as in other parts of the United Kingdom, is stimulated by promotional campaigns, visits, meetings, distribution of literature to universities and colleges, chambers of commerce and industrial firms.

I am gratified with that Answer, but would the hon. Gentleman ensure that greater publicity is given to the sixth forms and youth organisations, because he will find, I think, that there are many more volunteers available if greater publicity is given to the service?

A good deal of publicity is given, but I think that the hon. and learned Gentleman should remember, since he refers to sixth forms, that the kind of volunteers which my Ministry particularly helps are the graduates, and they are recruited at universities and from industry.

asked the Minister of Overseas Development whether he will increase the direct grant given by Her Majesty's Government to the organisation concerned with voluntary service overseas; and what further plans he has to assist this service.

asked the Minister of Overseas Development whether he will increase the direct grant given by Her Majesty's Government to the organisation concerned with voluntary service overseas.

The basis of the grant by Her Majesty's Government to all four societies in the British Volunteer Programme for 1969–70 remains as 75 per cent. of the costs incurred by those societies. On this basis, as the costs to the societies increase and as the number of volunteers increases, so does the amount of the grant.

Will the hon. Gentleman give greater encouragement to these societies, bearing in mind the tremendous benefit to the countries that have these young people and, even more important, the tremendous benefit to the young people who go out there?

I entirely accept the benefit that these young people bestow on the developing countries. We do a great deal to help the voluntary societies. I am not aware of any likely approach by the societies for an increase in grant. Indeed, I had discussions two years ago with them, and one of the large societies resisted any suggestion of an increase because they were anxious to maintain fully the voluntary nature of their work.

In addition to graduates, can my hon. Friend say what is being done to recruit tradesmen and others with practical skills who have a real contribution to make in the scope of services provided?

The voluntary societies are aware of my views. They have followed up suggestions that I have made and they have had considerable success in recruiting the kind of young person referred to by my hon. Friend.

asked the Minister of Overseas Development what financial aid is being given by Her Majesty's Government to the higher education services of the Republic of Somalia.

There is very little higher education in Somalia at the present time, and we have decided that we can best help by offering awards for two years' training at "A" level in Britain, leading to degree or equivalent courses.

Is my hon. Friend aware that the former Institute in Mogadishu is the nucleus of the future University of Somalia? Is it not important that we should make some gesture to help the English-speaking sector by perhaps sending out a lecturer? I will not ask that we endow a Chair of English at the University, but we should in this way help with English-speaking teachers.

One of our principal advisers has been to Somalia and studied the question of a possible university. We shall follow with interest developments in Somalia in higher education, and, if requested, we shall do our utmost to help as far as our resources allow.

asked the Minister of Overseas Development what steps he is taking to assist the various developing countries to obtain extra agricultural advisers to help with agricultural expansion in these countries.

The number of agricultural staff supplied by my Department to developing countries has grown since 1963 from 100 a year to nearly 200 a year. There are now some 1,500 British agricultural experts working in agricultural development under our bilateral aid arrangements, and many others in F.A.O. If there is a further expansion in the demand, we would hope to be able to meet it.

Does the hon. Gentleman realise that this is the best way of helping emerging countries? Also, it will help to encourage young people to realise that agriculture is a dignified way of living, which is absolutely vital to these areas.

I entirely accept the implication in the hon. Gentleman's question.

Can my hon. Friend say whether there is a demand at the moment which is approved by the Government but which it is not possible to fulfil because of the shortage of suitable personnel?

There are at present 169 vacancies, but these are in the normal process of recruitment. I should not say that there is a special bottleneck in this sphere.

asked the Minister of Overseas Development whether he will take the initiative in proposing a plan to co-ordinate the work of member countries of the Council of Europe in regard to aid for the underdeveloped countries.

No, Sir. The Development Assistance Committee of the O.E.C.D. is the forum in which donor countries discuss and agree the co-ordination of their aid activities. All the member countries of the Council of Europe who are donors of aid are also members of this Committee, in addition to the United States of America, Canada, Australia, and Japan.

I thank the Minister for that informative reply. But is not the point that a new initiative needs to be taken in whatever forum it happens to be? Would this not be a much more constructive initiative for the future of Europe than the present bout of fisticuffs with France?

The latter part of the hon. Gentleman's question refers to discussions which we shall be having later.

asked the Minister of Overseas Development whether he will make a statement on British Government policy in regard to assisting the work of the World Bank to aid under-developed countries.

Her Majesty's Government strongly support the work of the World Bank and its two affiliates, the International Development Association and the International Finance Corporation, whose activities are now mainly directed towards assisting developing countries. We welcome the Bank President's plans to increase the group's lending programme, and his proposals for a greater flexibility in the use of its resources.

Can the Minister say what concrete plan the Government have to increase the British contribution to the World Bank and its subsidiaries in order that the maximum advantage may be taken of Mr. McNamara's dynamic leadership, which, for the first time in recent years, offers a guarantee that money raised will be well invested and well spent?

The expansion envisaged by Mr. McNamara takes the form partly of the activities of the main bank, which raises its money on the world money markets, and partly of the activities of I.D.A., which gets a Government contribution. We have pledged our share to the higher replenishment of I.D.A. for the next three-year period.

The right hon. Gentleman will recall that we passed the legislation replenishing our contribution last summer. May I ask whether he can say anything about the other donors? For example, what have the Americans done so far? Is this a matter which is being discussed with President Nixon while he is over here?

Most of the other donors ratified the agreement. The outgoing United States Congress did not do so. I am hoping that the new American Congress will be able to consider this matter before long. In the meantime, a number of leading donor countries, including Britain, have committed their first year's contribution towards the higher replenishment so that I.D.A. activities can continue.

Does the Minister agree that the most vital thing concerning I.D.A. and the use of the administrative skills of Mr. McNamara in aid development is to make sure that the American Government are made aware of the importance of replenishment now?

I hope that the American Government will take a view of this matter similar to that of Her Majesty's Government and that the American Congress will follow suit.

asked the Minister of Overseas Development what agreement has been reached with the Kenya Government over the definition of current market value as applying to the 400,000 acre re-settlement scheme in Kenya.

The Kenya Government have agreed that, so far as purchases by the Agricultural Development Corporation are concerned, and also purchases for the settlement programme, valuations should continue to be based on the comparative method.

While thanking the hon. Gentleman for that reply, may I ask whether he can confirm that, given the continuance of reasonable valuation, Her Majesty's Government have contributed enough to the land resettlement scheme to enable it to continue for its full four years originally envisaged?

I can give the assurance that the scheme is working satisfactorily.

asked the Minister of Overseas Development whether agreement has now been reached with the Swazi Government over the land alienated early in this century; and what additional development aid has been promised.

The Working Party of experts, to which my right hon. Friend referred in reply to a Question by the hon. Member for Haltemprice (Mr. Wall) on the 10th December last, is now in Swaziland examining the land question. When they have reported both Governments will consider holding further discussions. No additional aid has been promised for land acquisition.—[Vol. 775, c. 79–80.]

Will the hon. Gentleman bear in mind that this question of land is the one outstanding issue between the two Governments? Is it still the hon. Gentleman's intention to deal with it in the context of a development aid programme?

We have made it clear to the Swaziland Government that we would welcome their putting land schemes within their development programme. That is how we would prefer to consider them.

asked the Minister of Overseas Development whether he will ensure that in future estimates of overseas aid reference is made to the amount of interest and capital repayments made by developing countries.

I am considering these matters in the light of the Seventh Report from the Estimates Committee on Overseas Aid. Without anticipating the White Paper, which I hope to publish shortly, I want to say that I am sympathetic to the Committee's recommendation and will do my best to meet it.

As it has been estimated that the amount of aid, interest, and capital repayments this year will exceed £50 million, should not the Minister trumpet this figure from the rooftops, as this may help him in his negotiations with the Treasury Ministers who are sitting next to him now?

I always draw attention to these figures when appropriate, and particularly when talking to my hon. Friends at the Treasury.

The right hon. Gentleman referred to a White Paper. This takes some of us by surprise. Can the right hon. Gentleman say what the White Paper is about, and when we can expect it?

It should not take the hon. Gentleman by surprise. I promised it to the House at a time when the hon. Gentleman was present. The White Paper will reply to the recommendations made by the Select Committee on Estimates. I hope to present it within about three weeks.

asked the Chancellor of the Exchequer what decision he has made concerning the exclusion of briar-wood ebauchons from the operation of the Import Deposit Scheme; and what are the reasons for his decision.

The Government are now prepared to add briar root blocks, for pipe manufacture, to the list of exemptions from the import deposit; the necessary Treasury Order will be laid as soon as possible. This is an exceptional case in many of its aspects and I hope it will not arouse unjustified hopes of further concessions.

I thank the hon. Gentleman for that reply, and I promise not to bring any more forward personally, though I cannot vouch for my hon. Friends.

asked the Chancellor of the Exchequer if he will make a statement on his discussions with the joint stock banks on his request to them to reduce their lending by a further £150 million.

asked the Chancellor of the Exchequer if he will make a statement on the present and prospective level of clearing bank advances; and what further measures he proposes to restrict credit.

The clearing banks were asked last November to reduce their restricted lending to 98 per cent. of its devaluation level by mid-March this year. In January these banks were about 3 per cent. (approaching £150 million) above the target figure.

I am conscious of the extremely difficult position of local bank managers in trying to reduce the facilities they give, but does not the refusal by the central banks make it very difficult for the Chancellor to pursue his economic policies? Is my hon. Friend satisfied that his right hon. Friend has adequate powers under the 1946 Act to enable him to pursue the economic policies that he wants to?

I am satisfied that the Chancellor has adequate powers, and I would not accept that the banks have refused to co-operate. Indeed, there is a long record of co-operation in a difficult area here by the clearing banks.

Referring to the second part of my Question No. 28, can the hon. Gentleman confirm that the Government have no intention of extending their statutory powers over credit financing to cover techniques not currently covered by hire-purchase restrictions?

I hope that the hon. Gentleman will not seriously expect so comprehensive an assurance in the course of a reply to a supplementary question.

Would not it help if the Government were to hasten the payment of their debts to the private sector, debts which, owing to legislation of one sort and another, such as S.E.T., have increased very greatly?

I am not aware that Her Majesty's Government are in default to any citizen in respect of their debts.

Would my hon. Friend be surprised to learn that he has my full support at any rate in all steps taken by the Treasury to ensure that this country lives within its means for the good of both its national health and its international commitments? Until we -do that, we shall continually be in the red. Will my hon. Friend give me an assurance that he will use every effort of his Department to see that people do not borrow money from the banks to speculate on the stock market?

I am grateful for, but unsurprised by, the constructive attitude adopted by my hon. Friend. I can assure him that the credit ceilings are such as to discourage the kind of activities which he thinks would be inadvisable.

asked the Chancellor of the Exchequer if he will make a statement on the extent to which the Government are currently using interest rates as part of the policy of restricting total demand on available resources.

Levels of interest rates in this country do not depend solely on decisions of the authorities. In so far as they do, it is the Government's policy that they should be consistent with the requirements of domestic and external policy. This is not simply a matter of direct effect upon demand; the economic consequences of changes in interest rates are highly complex.

Is the hon. Gentleman aware that it would be much more preferable, if the Government seek to ration credit, that they should do so through the market mechanism by allowing the Bank Rate to move upwards, rather than attempt to sub-contract this task on to the clearing banks and ask them to carry out a private administrative system?

The two methods of restricting credit are complementary, rather than alternative as the hon. Gentleman implies.

Does the hon. Gentleman realise that the Government have taken the law unto themselves in this matter, as they have done with the deposits on import duty, collaring the lot and paying no interest whatsoever?

It is in the nature of Governments that they are there, with the approval of Parliament, to take the law unto themselves, but under our Constitution they require the assistance and approval of Members of the House.

asked the Chancellor of the Exchequer if he will make a statement on the effects of present tax incentives to industry for investment in new plant and machinery.

The question of investment incentives has recently been under review by the N.E.D.C., and the Government are currently examining various aspects of investment policy. But I am not sure how far it is possible to isolate the effects of tax allowances from the effects of the other measures included in the present system of incentives.

As there are clearly genuine doubts about the effectiveness of the direct incentive of investment grants, would not my right hon. Friend agree that there is clearly some incentive in that out of the cash flow that arises, and is it not important that he should consider doing something about reducing the period of delay between the date of purchase and the date of payment of the grant, which would affect the cash flow, and very likely improve the cash incentive effect?

My hon. Friend knows that the period has been reduced.

As the amount of investment in manufacturing industry, which attracts investment grants, fell last year to a level as low as it was in 1961, is not there at least a prima facie case for saying that investment grants are wasteful and not helpful to investment? Will the right hon. Gentleman consider replacing the present system by one of initial allowances, and depreciation allowances over a fixed period?

As I have already indicated, the Government are reviewing the whole field.

Can the right hon. Gentleman say what the average period of delay is now for the payment of these grants, and how it compares with the period when receipts under the tax allowance system might have been expected?

I cannot answer that off hand, but if the hon. Gentleman puts down a Question to my right hon. Friend the President of the Board of Trade he will no doubt get an accurate answer.

asked the Chancellor of the Exchequer, in view of the prevailing high interest rates, if he will raise the rate of interest from which is paid the prize money for Premium Savings Bonds.

My right hon. Friend is currently reviewing all possibilities for increasing savings.

Would the hon. Gentleman agree that the capital value of Premium Bonds is eroded by inflation, and that the income yield is now not compatible with what can be got from debentures? Will he review this so as to tap this very important form of savings?

I shall ensure that all these points are kept in our minds.

asked the Chancellor of the Exchequer whether, in order to avoid the unfavourable effect on sterling of impending publications of Supplementary Estimates, he will announce simultaneously with their publication the total net savings effected on the current estimates.

I refer the hon. Gentleman to the statement made by my right hon. Friend the Chancellor of the Exchequer on 20th February, 1969.—[Vol. 778, c. 779.]

asked the Chancellor of the Exchequer whether he will state the aggregation of motor taxation comprising fuel duty, road fund licences, and purchase tax on new non-goods vehicles for the year 1963–64, and the comparable figure estimated for the year 1968–69; and how much is the increase as a percentage of such aggregation, and the increase in sterling between the two respective years stated.

The 1963–64 aggregate is £811 million and the estimated 1968–69 aggregate is £1,595 million, a crude increase of 97 per cent. or £784 million. Over the same period the numbers of private cars grew by approximately 46 per cent. Consequently the comparable increase, after adjusting for the increased number and use of vehicles, and allowing for changes in purchasing power, was 23 per cent.

Has the right hon. Gentleman observed the fierce resistance to all proposals from the Treasury to increase motor taxation further, and will he take this fully into account in the Chancellor's forthcoming Budget?

I have observed the nature of the comments made by those who are not wholly in favour of this kind of taxation.

asked the Chancellor of the Exchequer what study he has made of the proposals recently published by the United States Treasury to reform the entire federal United States tax system, a copy of which has been sent to him; and whether he will consider introducing such a comprehensive reform in this country.

I have seen reports of these proposals. When I have received full details I will certainly consider to what extent they are relevant to this country.

When the Chief Secretary is examining these proposals will be appreciate, first, that they introduce the important principle that no American taxpayer shall pay more than 50 per cent. of his income in taxation and, secondly, that these reforms will be debated in the open by a Congressional committee? Would not the right hon. Gentleman agree that that is the right way to introduce tax reforms, rather than the system which we adopt?

There is, as usual, a great deal in what the hon. Gentleman says. He will recollect, however, that a major tax reform was introduced in this country in a similar way by having a White Paper published and considerable discussion taking place in advance of legislation?

asked the Chancellor of the Exchequer whether he will now make a further statement concerning his inquiry into matters relating to the annual licence fee for motor cars.

No, Sir. The hon. Gentleman must await the report of the Select Committee.

I am aware of that, but has the right hon. Gentleman observed that the Chancellor of the Exchequer blundered into a damaging error in saying—it appears in the OFFICIAL REPORT of 3rd February last, c. 38—that the sum is never printed on a motor car licence form whereas all hon. Members know from experience that it is often printed? Would not the right hon. Gentleman agree that his right hon. Friend should now retract that damaging and erroneous statement?

I am aware that somebody has blundered, but I would not care to say who it is.

On a point of order. May I inquire from you, Mr. Speaker, by what machinery this Question appears on the Order Paper today, when this matter is under consideration—and is, therefore, sub judice for the time being—by a Select Committee upstairs? How did it come about that facilities were given for this matter to be debated by the man concerned, the hon. Member for Worcestershire, South (Sir G. Nabarro)?

The Question itself is in order. I thought that the supplementary question and answer grew near to talking about a matter which we have referred to a Select Committee.

asked the Chancellor of the Exchequer under what criteria a deputy valuation officer recently recommended a reduction in the gross figure for property and land at Arundel from £2,100 to £1,850 and in the rateable value from £1,722 to £1,513, and a reduction in the gross figure for another property there from £2,060 to £2,000 and in the rateable figure from £1,688 to £1,638.

I assume that the Question refers to recent reductions in the rating assessments on Arundel Park and Arundel Castle. The valuation officer recommended reductions in the Arundel Castle figures only. These reductions, of £60 in the gross value and £50 in the rateable value, recognise that there is inevitably an element of imprecision where larger values are involved, and particularly so in the valuation of such an unusual property.

Is my hon. Friend aware that a valuation officer stated in court that the noble Lord the Duke of Norfolk's place was in danger of falling into the hands of long-haired pop stars? If the noble Duke is in difficulties, should he not apply for a rate rebate, just as thousands of people throughout the country must do in these circumstances?

Rateable values are fixed by the open market price of the property concerned and not in relation to possible special and specially opulent tenants.

asked the Chancellor of the Exchequer what contribution was made to the United Kingdom's overseas invisible earnings in 1968 by each of the following categories, namely, banking, insurance, merchanting and other financial institutions.

The 1968 estimates are not yet available.

Would not the Financial Secretary agree that, when available, they are likely to show that the invisible earnings of the City of London were at an all-time record, which is not bad for an ale-house and gin and tonic set-up? Will he persuade his right hon. Friend that instead of castigating the City he should congratulate it on keeping this country solvent?

I appreciate that my right hon. Friend is a favourite target for the speculative distortion of what he has said. However, my right hon. Friend and the Government greatly value the contribution made by the City institutions concerned to our invisible exports.

asked the Chancellor of the Exchequer to what extent he estimates that the reduction or elimination of his borrowing requirement this financial year and next will correspondingly obviate the need to finance Government expenditure by borrowing overseas or running down gold and currency reserves.

This Question seems to rest on a false premise. The amount of finance accruing to, or provided by, the Government as a result of external transactions reflects mainly the balance of payments and flows of foreign exchange, and is not directly connected with the size of the central Government's borrowing requirement or surplus.

Will the Financial Secretary recognise, nevertheless, that overseas borrowing and dipping into the currency and gold reserves has played a substantial part in meeting the Government's financial needs in the last four or five years? Will he also recognise that this sort of dipping into the reserves is increasing the burden of our overseas deficit and cannot go on?

That supplementary question is not directly related to the Question and is only a partial comment on a very complex overall situation.

asked the Chancellor of the Exchequer whether he will end the anomaly under which British war widows pay Income Tax on pensions awarded under the Royal Warrant but are exempt from Income Tax on pensions awarded by the French Government.

Certain pensions paid by the French Government are exempt from tax in this country by virtue of the double taxation agreement with France, which dates from 1950. But this has never been held to justify exempting war widows' pensions paid by Her Majesty's Government.

Will the right hon. Gentleman represent to the Chancellor of the Exchequer the fact that relief from having to pay Income Tax by war widows on these pensions would not represent an inflationary measure in the forthcoming Budget and would be a popular step for him to take?

I will certainly convey to my right hon. Friend what the right hon. Gentleman has said on this subject.