asked the Secretary of State for Wales if he will indicate what is his policy regarding the development of a new town at Llantrisant now that the Buchanan Report has been published.

As my hon. Friend the Minister of State said in the House on 22nd April, the Report will need most careful study before any decisions are reached, and there will have to be consultations with all the local authorities and other interests concerned.—[Vol. 782, c. 397–421.]

Is my right hon. Friend aware that Llantrisant is a growth area which is developing apace without any master plan, and that this is causing some anxiety? Therefore, is it not important to give full weight to paragraph 116 of the Buchanan Report so that the new town may proceed as rapidly as possible in the circumstances?

I shall give consideration to all relevant issues.

In view of the fears which have been expressed in Cardiff, Newport, Barry and elsewhere that the development of the new town may accelerate the loss of industry to the Welsh development area, will the Minister give an assurance that that aspect of the matter will also be considered?

It is one of the important aspects to consider. I should like to make it clear that I see no advantage in damaging in any way the old-established communities which we have around us.

asked the Secretary of State for Wales what representations he has received from local authorities and other bodies in West Wales regarding the social need to maintain the railway lines west of Swansea; and what has been his answer.

My right hon. Friend is aware of the importance which local authorities and other bodies in West Wales attach to the railway lines west of Swansea. Decisions on railway services are the responsibility of my right hon. Friend the Minister of Transport but my right hon. Friend is consulted before decisions are taken. The Welsh Council is also given the opportunity of making its views known to my right hon. Friend the Minister of Transport.

Is the hon. Gentleman aware that his Answer does not meet the point that it is the Government's policy to encourage industry to West Wales and yet the Government are responsible for a situation in which difficulties are being placed in the way of anybody who is considering establishing industry in West Wales? What steps do the Welsh Office intend to take to deal with this hiatus?

My reply was to the point, in that the hon. Member had asked what representations had been made and I indicated the representations. But I assure him that my right hon. Friend is aware that both the railway lines involved, Swansea—Milford and Whit-land—Pembroke Dock, are vital to West Wales and he is giving the matter close attention.

asked the Secretary of State for Wales what further steps are planned in establishing transport passenger boards in South Wales; and if he will make a statement.

My right hon. Friend has asked the Passenger Transport Co-ordinating Committee for Wales to undertake a detailed study of public passenger transport in South-East Wales and to consider whether there is a need to establish a passenger transport authority for the area.

When will greater urgency be shown in overcoming the present wasteful passenger transport set-up in South-Wales, especially South-East Wales?

I am sure that my hon. Friend will agree that it would be unwise to give such an undertaking without a full study in the first place.

Push ahead.

asked the Secretary of State for Wales when he will authorise the next main phase of development of the Royal Gwent Hospital, Newport, Monmouthshire; and if he will make a statement.

Planning is proceeding on a further three phases of redevelopment, two of which it is hoped to start in the period up to 1971–72 and the third in the period following. The first of these phases consists of residential accommodation for medical and nursing staff; an x-ray department and multi-discipline training school will follow and clear the way for the third phase, a new ward block providing 270 acute beds and supporting facilities.

But will my hon. Friend appreciate that there is great pressure on this hospital, and ask her right hon. Friend to review major capital investment schemes at hospitals in Monmouth-shire to see that they are more directly related to economic trends in the area, particularly the movement of population?

My hon. Friend will be aware that considerable developments have already taken place at this hospital. We shall proceed as rapidly as possible with the further developments which I described.

asked the Secretary of State for Wales if he will now seek to amend the Leasehold Reform Act, 1967, in order to further clarify the basis of determination of the charges for enfranchisement following the recent decisions of the Land Tribunal; and if he will make a statement.

I would refer my hon. Friend to the replies my hon. Friend the Joint Parliamentary Secretary to the Ministry of Housing and Local Government gave to him and to my hon. Friend the Member for Woolwich, East (Mr. Mayhew) on 28th April.—[Vol. 782, c. 173–4.]

Will my right hon. Friend appreciate, nevertheless, that the great expectations raised by the passing of this Act have not been realised? Particularly in view of the recent Lands Tribunal decision, would he seek to amend it soon to assist those leaseholders, particularly in South Wales—many of whom are in the autumn of their lives—who are finding it very difficult to cope with these matters?

I am well aware of the facts to which my hon. Friend has drawn my attention and I can assure him that the Government are also aware. I ask him to be patient for a little longer, when I hope that he will have good news.

In view of the prominent part which the right hon. Gentleman played in this Measure, and in which he always had my support, can he amplify his assurance to say that he will press his right hon. Friend the Minister of Housing to bring in the necessary Amendment? Would he also consider the analogous problem of difficulty in the sale of certain flats?

I will look into the latter question. On the first, I hope that the hon. Gentleman will, if the Government table the necessary Amendment, ensure the support of his own side.

Is my right hon. Friend aware that many leaseholders have already managed to take advantage of the terms of the Leasehold Reform Act, and that, as a result of the Lands Tribunal decision, there are some difficulties over the question of whether leaseholders are bidding in the open market for their freeholds and whether they should pay market value? Would my right hon. Friend consider this when reviewing the legislation?

Those are major considerations, and I would ask my hon. Friend, who has also played a prominent part in this leasehold agitation, to be patient a little longer.

asked the Secretary of State for Wales whether he will make a statement on the progress of his discussions regarding the reorganisation of local government in Wales.

Consultations with the local authority associations have been in progress for some months on a wide range of issues which will require to be dealt with in legislation on this matter. The talks which have been detailed and helpful are continuing.

Would my right hon. Friend confirm that the so-called "shadow plan" published in the Western Mail recently was an accurate account of an alternative which my right hon. Friend had rejected? Would he not reconsider at least one aspect of that plan, the radical reform of local Government in South Wales, which would not be done under the present proposal?

Fortunately, I do not have to confirm or deny what is in the Western Mail. It is a very interesting newspaper, and I am a faithful reader, but I cannot go any further than that.

Is the right hon. Gentleman aware that district councils seem to have sustained a different impression of what their powers are to be under the new legislation than the one put forward by the Minister of State? Would it not be better if the right hon. Gentleman issued a statement of exactly what the proposals for those powers were?

The statement of my hon. Friend was entirely accurate, and consultations with the local authority associations are making this clear.

asked the Secretary of State for Wales what representations he has received from the Council for Wales and Monmouthshire and other interested bodies, regarding both the Government's decision not to accept the Hunt Committee's recommendations concerning Merseyside and its failure to relieve North East Wales and the North Wales coastal strip from the difficulties resulting from that area's exclusion from the development area or any other grey area proposals.

I have received representations from Flintshire County Council. The Welsh Council will be meeting shortly to consider the Report and various matters arising from the statement made on 24th April by my right hon. Friend the Secretary of State for Economic Affairs.

Is the right hon. Gentleman aware that the north-east corner of Wales is particularly badly affected by this, because it is sandwiched between the Welsh development area and the Merseyside area, and Wirral is bursting at the seams? Unemployment in the Rhyl and Colwyn Bay areas is much higher than in large parts of the Merseyside area. Cannot something be done about this? Was not the Hunt Committee right?

The unemployment rate in the Merseyside development area was 3·9 per cent. in March. It is much too early to consider de-scheduling this area. I am keeping under close review the question of the areas to which the right hon. Gentleman has referred.

asked the Secretary of State for Wales if he will detail, by grade, the numbers employed in the Welsh Office at 31st March, 1967, 1968, and 1969.

The total numbers employed in these three years were 483, 532 and 547, respectively. I will circulate details in the OFFICIAL REPORT. There has been a general increase in the level of work, as the House will be aware.

asked the Secretary of State for Wales whether he will indicate the key topics which have been discussed by the Welsh Council since its inception; whether he is satisfied with the work of the three Panels; and whether he will make a statement.

Industry and employment, communications, finance and environmental matters. My right hon. Friend maintains close touch with the work of the Council and its Panels, which represent an important source of advice on these issues.

What is the reason for the fact that, despite the great deal of publicity and Press comment at the inception of this Council, we now do not hear about it? Can we have periodic reports, apart from the annual Report or White Paper?

I am sure that my hon. Friend will appreciate that the Panels are investigating matters of major importance. They have not yet submitted reports to the Secretary of State. When they do, it will be for consideration by the Council and the Secretary of State whether those reports should be published.

Does the right hon. Lady agree that there is a fairly widespread impression that the Welsh Council is not doing anything of great consequence? Can she disabuse us of that opinion?

I repeat that it has not yet published reports, but it has been giving constant and valuable advice to my right hon. Friend on a wide series of topics.

asked the Secretary of State for Wales how many meetings the Welsh Council has had to date.

The Welsh Council has met six times since it was appointed in April, 1968.

Has the Council considered the urgent matter of the threatened closure of the Central Wales line? If it has, why not lift the shroud of secrecy from its report? Did it bring to the right hon. Gentleman's attention the fact that, when British Railways publishes alleged losses, they do not include the income from goods traffic?

I assure the hon. Gentleman that the Welsh Council has been considering transport services in Wales since before he came to this place.

asked the Secretary of State for Wales whether he will indicate the date when he is likely to give a decision following the public local inquiry at Brecon at the end of January last into an application for an order by the Usk River Authority to enter land in the Usk and Senni Valleys, Breconshire, for the construction of reservoirs.

The Usk River Authority's application for an Order under section 67 of the Water Resources Act 1963, sought power to enter on land in the Usk and Senni Valleys for the purpose of sinking bore holes and carrying out geological investigations of the sites. The inspector's report is being considered urgently and a decision will be given as soon as possible.

asked the Secretary of State for Wales if he will state the total estimated new commitments in 1969–70 in respect of new construction and major improvements for trunk roads and for principal roads and loans to highway authorities, respectively.

Provisional totals for new commitments on road construction and improvement in 1969–70 are:

Would the hon. Gentleman consider whether it might not be wise, in the interests of the Welsh economy, to give a rather higher priority to the importance of the major roads and trunk roads than has been the case in the past?

I would remind the hon. Gentleman that the total expenditure on Welsh roads last year was £32 million—£11 million more than in 1964, the last year of Tory administration.

asked the Secretary of State for Wales what proposals have now been made as a result of investigations into the development of the heads of the valleys area as a major growth point; and if he will make a statement.

No specific proposals have been made for the development of a major growth point in the heads of the valleys area.

But would my hon. Friend not agree that, in view of the strategic importance of this area, development here would help to relieve many adjacent areas of their high unemployment? Would he assure us that close examination will be given to this?

The needs of the heads of the valleys area are not being overlooked. I would remind my hon. Friend of the recent announcement in his area of an advance factory of 25,000 sq. ft.

asked the Secretary of State for Wales whether he is now in a position to make a statement on the future of Caerphilly Miners' Hospital.

No, Sir. Tentative proposals have now been prepared by the hospital authorities but they have not yet sought the authority of my right hon. Friend to start local consultations. No decision on the future of the Caerphilly Miners' Hospital will be taken until proposals have been put to him which will be considered in the light of representations made by local interests.

Would my hon. Friend accept that the people of this area, like those of many other areas of Wales, are seriously concerned about the closure of local hospitals? Would she also accept that serious emotional tension is developing in the area? Would she use her influence to see that a decision is made as soon as possible?

It will not be possible, of course, for my right hon. Friend to consider proposals which have not yet been put before him. When they have been, I am sure that he will consider them as rapidly as possible.

asked the Secretary of State for Wales what is the total number of official forms available in Welsh at present; and how many will be available by the end of 1969.

146 forms are available, 87 more will come into use on 1st June. Beyond this, I cannot predict how many more will be available by the end of 1969.

Will my right hon. Friend give some consideration to the general economic needs of Wales and examine the cost of production of these forms, the number used and their value to the general public in Wales as a whole?

We try to publish in Welsh versions those forms which are used extensively and which have the greatest impact on the daily life of our people.

Is the right hon. Gentleman aware that there is widespread disappointment in Wales that the Government have not pursued a policy of bilingualism with more determination and that, even in their declared policy of equal validity, they have been dragging their feet?

The hon. Gentleman realises that the principle of bilingualism would mean that all our official business in Wales would have to be conducted in both English and Welsh. Since eight out of ten of the Welsh people do not speak Welsh, that would be grossly unfair.

asked the Secretary of State for Wales what progress he now expects in the repair of Ely Bridge, Cardiff.

With the co-operation of the Cardiff City Council which is making land available, I am arranging temporary relief by erecting three Bailey bridges across the river. These will take all vehicles within the Construction and Use Regulations and should assist the flow of traffic and enable permanent repairs to be expedited. The Bailey bridges will be brought progressively into use over the next two months after which repair work can start.

Would my right hon. Friend accept that this is very good news for harassed motorists and commuters in Cardiff who have suffered great irritation on a main road and an important key bridge in the city's communications? As a result of these Bailey bridges, when will permanent repairs to Ely Bridge itself be completed?

I am hoping that within six months we shall be able to return to normal.

asked the Secretary of State for Wales what are his plans in regard to the future of the Rural Development Board.

I cannot at present add to the statement which I made in reply to the hon. Member on 2nd April.—[Vol. 781, c. 117.]

Is the right hon. Gentleman aware that in the report of the Aberystwyth inquiry it was stated that, in its early stages, the Rural Development Board had been "wise, patient and forbearing" in its public relations? For how long are these early stages to continue? Is it to be for one year, two years or longer? For how long will the Board have to be wise, patient and forbearing?

The answer is, "For as long as necessary".

Would the right hon. Gentleman ensure that the very real anxieties which have been expressed in many of the counties affected will be carefully considered by him and the Board?

We, of course, take into full consideration all public feelings that are expressed.

Will my right hon. Friend ensure that, when the period of wisdom and forbearance comes to an end, the Board will not be invested with the sort of powers which the hon. Member for Carmarthen (Mr. Gwynfor Evans) would like it to have; namely, that it should be a Tennessee Valley type of organisation for the whole of Wales?

Yes, Sir. I gladly give that assurance because we are determined to protect the interests of the farmers.

asked the Chancellor of the Exchequer, in view of the fact that nationalised industries are allowed to borrow long term from abroad, what steps he is taking to reduce the Government's short-term debt.

I am well aware of the desirability of funding our external short-term debt over a longer period. Long-term borrowing in foreign currencies by nationalised industries has a useful part to play in this process.

Can the Financial Secretary give an idea of the extent to which he hopes to use this process and the rapidity with which he hopes to develop it?

That will depend on the state of the market. [Interruption.] I can inform the hon. Gentleman that we have so far obtained £30 million for the Gas Council and £7 million for B.E.A.; but what future borrowings will take place will depend very much on market conditions.

Is the hon. Gentleman aware that while Western Germany is the only place where money can be raised, we are at the same time pressing the Germans to revalue their currency, which means that this borrowing is likely to be very expensive indeed?

The point raised by the right hon. Gentleman does not hit me with a shock of novelty. The state of the currency markets is one of the factors which is taken into account when borrowing money; and, of course, the rate of interest and the length of the loan are other factors which play a part in judging whether it is dear or cheap money. The right hon. Gentleman's view is by no means final and conclusive in this matter.

asked the Chancellor of the Exchequer whether his calculations on the size of the borrowing requirement include the effect of net changes in the swap arrangements between central banks.

No, Sir. The size of the Central Government's borrowing requirement, or surplus, is not affected by these arrangements.

Can the hon. Gentleman say if there is any relationship between borrowing overseas and the borrowing requirement at home? Can he also say whether this money is being used to finance the Bank of England's purchases of sterling in support of sterling or simply to replenish the reserves?

The answer to the first part of the hon. Gentleman's supplementary question is that there is no relationship between borrowing abroad and the Government's borrowing requirement. This is a somewhat complex matter which I should be glad to discuss in detail with him on another occasion. As for the use of this money, it eventually falls into the country's general reserves and, as such, is put to the best possible use.

asked the Chancellor of the Exchequer if he will make a statement on the level of bank lending.

Yes, Sir. There was a further fall, after seasonal adjustment, in lending by the main groups of banks, during the latest month for which information is available.

Will my right hon. Friend assure the House that in the letter of intent to the I.M.F., which is at present apparently being composed, the Chancellor of the Exchequer will not agree to any greater squeeze than he planned in his Budget strategy on the banks, on money supply or on anything else?

That supplementary question goes a long way from the original Question, which was about bank lending.

asked the Chancellor of the Exchequer if he will now make a statement on his studies of the effect of taxation upon incentives.

I wrote to my hon. Friend on 29th April outlining my conclusions.

While I am grateful to my right hon. Friend for sending me that letter, which I read with interest, may I ask him to reflect that it did not take the matter much further since it did not show that the Government are themselves carrying out the researches and studies mentioned in the Question, which is the point with which I am particularly concerned? Is he aware that when raising so much money by way of revenue, the least he should do is to carry out some research into the effectiveness of raising that money?

My hon. Friend will recall that in the long letter which I wrote to him I described the results of seven pieces of research.

But none of them by the Government.

I indicated the preliminary research that the Government had done and I told my hon. Friend—I repeat it now—that we were not aware of any method of selecting, dissociating or finalising the various effects to which he referred; in other words, of separating all the various effects of taxation on a man's employment, his level of wages and the various other incentives that exist. If my hon. Friend has a precise method of doing this work, I should be glad to hear about it and I assure him that I would follow it up.

Will the right hon. Gentleman place in the Library the correspondence which he has had with his hon. Friend the Member for Ashton-under-Lyne (Mr. Sheldon) so that all hon. Members may study what appears to be an extremely interesting document?

I would be delighted to do so, after consulting my hon. Friend.

Has the right hon. Gentleman's attention been drawn to the views of the C.B.I. on this matter? Has the expression of those views led to an officially sponsored call by the Labour Party for the dismissal of the Director-General of the C.B.I.?

That supplementary question has no bearing whatever on the main Question. [HON. MEMBERS: "Answer."] I am aware of the views of the C.B.I. and, as far as I know, the C.B.I. has no means of conducting further research which is likely to throw up the essential information which we would all like to have.

asked the Chancellor of the Exchequer if he will make a statement on his latest round of talks with the representatives of the International Monetary Fund.

No, Sir. These discussions were confidential, as usual.

In view of the further standby, can the Financial Secretary say how frequently the I.M.F. will be examining our economy? Have not the Government now got themselves into the classic position of all defaulting bankrupts, of not being master in their own house?

I can best answer the hon. Gentleman by stating three facts: first, the Government is not a defaulter; secondly, it is not bankrupt; and, thirdly, it is master in its own house.

Oh, dear. Write that down!

Is my hon. Friend aware of the deep anxieties that are felt by many people about rumours of negotiations that are going on in Washington which may have extremely far-reaching repercussions on the future of the British economy and the well-being of the British people? Will he undertake to give to the House at the earliest possible opportunity a clear statement, if possible during this week, on the progress that is being made in those negotiations?

I understand perfectly the anxieties of my hon. Friend and other hon. Members. I have already given a firm pledge that any letter of intent will be published. I invite my hon. Friend to show a little patience and to wait until he has some facts, rather than excited newspaper headlines, on which to judge the matter.

At a time when the British people are being subjected to appalling hardships of credit squeeze and additional taxation, is it right that the hon. Gentleman's visit to Washington should have been conducted in conditions purporting to be of the greatest secrecy and without any public announcement having been made, so that one must read the newspapers to learn of his movements?

The answer to the first part of the hon. Gentleman's supplementary question is that the British people are enjoying the highest standard of life in their experience—

That's a good one.

—as well as the best public services in their experience.

The Financial Secretary referred to "excited newspaper headlines". Is he aware that a Treasury spokesman was quoted on the one o'clock news as having said that there had been discussions abcut "appropriate undertakings from the British Government"? In that event, why could not the House of Commons be informed of the position? Will he give the clearest undertaking that a full statement will be made by the Chancellor of the Exchequer to the House at the earliest possible moment?

Had I not been otherwise engaged, I might have heard that news bulletin and the quotation from the wireless to which the right hon. Gentleman referred, although it does not sound to me like a precisely accurate transposition of the words that a Treasury spokesman would use. I therefore do not consider that any undertaking is required in that respect.

In view of the strong opposition that existed to a previous letter of intent that was issued by the Government, and in order to protect the supremacy of Parliament, cannot my hon. Friend give a clear undertaking that there will be a debate in the House on any undertakings before any letter of intent is dispatched?

My hon. Friend is assuming that there are undertakings in the letter of intent. I am, of course, not free to discuss the discussions which are being undertaken with the I.M.F. These are, and always have been, confidential and could not be satisfactorily conducted on any other basis. I can only add that nothing that takes away from the Chancellor's judgment has been or will be undertaken to any outside body and that the supremacy of Parliament is not in question. [HON. MEMBERS: "It is."] Neither the Chancellor nor any Treasury Minister has any authority to do anything save with the assent, approval and support of the majority of this House.

Meanwhile, before the letter of intent is published, may we know if any undertakings have been given to the I.M.F. about the sacking of the Home Secretary from the Inner Cabinet?

While juvenile inference prevails, it might as well extend to that area, too, for those who like juvenile inferences.

Would my hon. Friend now give the assurance which his right hon. Friend would not give—that no undertaking will be given for there to be a further squeeze other than that which the Chancellor himself outlined in his Budget strategy?

I assure the House that any strategy undertaken by the Chancellor will be the strategy of the Chancellor, in consultation with his Treasury Ministers and the Government, and not a strategy undertaken from any other source whatever.

asked the Chancellor of the Exchequer what is his latest forecast of the annual rate of balance of payments surplus or deficit likely to be achieved by the end of the current calendar year.

asked the Chancellor of the Exchequer what is his estimate of the out-turn of the balance of payments for 1969.

I have nothing to add to the forecasts published in "The Financial Statement and Budget Report, 1969–70".

In view of today's appalling trade figures, is it not now apparent that we are heading for a massive balance of payments deficit this year? In view of this, would it not be more sensible for the Government to publish the letter of intent as rapidly as possible and assure the world that the I.M.F. is now taking responsibility for the management of our economy, instead of telling us that the Chancellor is to pursue his own strategy, which is rubbish?

I am not in the habit of being untruthful to the House. I again deny what it suits the hon. Gentleman to publicise—the suggestion that the I.M.F. is about to take over our strategy and, presumably, impose some dreadful squeeze on the British economy. The hon. Gentleman is continuing with his merely empty demagogy, with the result that the rest of his supplementary quesis not appropriate.

Will the Financial Secretary confirm that to get the balance of payments right is the main objective of his right hon. Friend the Chancellor of the Exchequer? Since it is clearly not succeeding, what new policies will the Government lay before the country which might have some chance of succeeding?

The prime purpose of the Government's economic strategy is, of course, to get the balance of payments right. International financial co-operation does not restrict the choice of the Government, but enlarges it to enable them to take the longer and more constructive view in these affairs. I do not accept that on one month's—

Three months'.

—or three months' perhaps disappointing trade figures, not up to what we should like to have seen, any of the exaggerated conclusions drawn by the hon. Gentleman should be drawn by the House.

Is it not a fact that the Budget was quite irrelevant to our balance of payments problems? Will the Financial Secretary publish the figures for his forecast both before and after the Budget changes so that we can ascertain what view the Government have about the matter?

The Budget was directly relevant to our balance of payments problems. There was continuation of the Government's strategy, as outlined by the Chancellor of the Exchequer. I will consider the request by the hon. Gentleman in the latter part of his question.

Is it not clear that the time has now come for the Government to change their economic strategy? Is it not clear that the time has come for the first time seriously to consider the idea of import quotas and controls?

I do not believe that my hon. Friend should be panicked by comment opposite into suggesting that our situation needs any such devices.

asked the Chancellor of the Exchequer what plans he has made against the repetition of large scale speculative movements out of sterling into Deutschemarks.

The hon. Member will have seen that the central bankers meeting in Basle announced on 11th May their agreement to take action to recycle the speculative flow of recent weeks, and to remain in contact in order to decide upon further measures if they should prove necessary.

I am sure that the Financial Secretary has no more faith in that arrangement than anybody else. Will the hon. Gentleman tell us whether any loans that we receive as part of the recycling arrangements will be denominated in dollars and, therefore, not subject to the revaluation of the Deutsche mark? Has his right hon. Friend considered imposing discriminatory quotas on German exports to this country meanwhile, and urging his colleagues in the I.M.F. to do likewise?

On the first part of the Question, it may suit the hon. Gentleman to trumpet the calamity of some international monetary co-operation and to deny the effectiveness of others. The fact remains that this is a valuable international co-operative action, for the benefit of the whole world, to prevent our economic plans being pushed aside by these vast speculative movements.

Will the Financial Secretary accept from me, as a Member not given to panic based on Press rumours, that it will be very difficult for many Members representing development areas to support the Government in any measures which give priority to safeguarding the balance of payments and the exchange rate at the expense of the development areas?

I recognise my hon. Friend's anxieties, but I find it difficult to know on what basis, other than newspaper headlines, he brings them to us. But let me assure him that the anxieties that he has outlined are entirely without foundation. The development of the regions and our policy towards them is not in question.

In brushing aside the comment of my hon. Friend the Member for South Angus (Mr. Bruce-Gardyne) the Financial Secretary ignored his very important question. Can he assure us that any recycling loans coming to this country from Germany will be denominated in dollars, not Deutsche marks?

I can assure the right hon. Gentleman that the recycling arrangements will be to the advantage of this country as well as other countries. [HON. MEMBERS: "Answer."]—I do not know whether right hon. and hon. Gentlemen opposite really think that international financial negotiations of this kind are best conducted on the Floor of the House. I do not.

Will the Financial Secretary agree that the events not only of the past few weeks, but of the east few months, show how extraordinarily fragile and artificial is the whole basis of the international monetary system? Should not the first priority of the Government be to press towards greater flexibility in exchange rates and the possibility of a new European reserve currency?

The lesson that I read from recent events internationally in the monetary sphere is that there is now a greater degree of co-operation between nations than has ever been seen in world history, and much to the advantage of the world. I am not able to adopt the latter part of the right hon. Gentleman's suggestion.

The House recognises that negotiations of an international nature must often be carried on in confidence. But this afternoon the Financial Secretary has deliberately pursued a course of evasion in answering Questions which deserved answers. Have not he and the Government yet learned that far more damage is caused to currencies and to international trade by such a deliberate policy of evasion instead of telling the House what the true position is?

There has been no evasion on my part. I have been asked particulars about discussions which are, always have been, and necessarily must be, confidential. In my anxiety to please and and inform the House, I cannot give way, as I gladly would, and remove many doubts which are causing anxieties in the minds of my hon. Friends, because these discussions are confidential. But when the due time arrives, they will be fully discussed and all these points will be fully answered.

On a point of order. In view of the unsatisfactory nature of that reply, I beg leave to give notice that I will seek to raise the matter on the Adjournment at the earliest opportunity.