asked the Chancellor of the Exchequer what have been the total purchases of silver by this country from the U.S.S.R. and the U.S.A., respectively, during the first two months of 1947; and how much of these amounts has been bought for export to India.

One and threequarter million ounces on U.K. account, all from the U.S. Foreign clients also bought, through London brokers, 11¾ million ounces from the U.S., and ½ million ounces from the U.S.S.R.—the bulk for India.

Does that mean these purchases from America were paid for by us in dollars, and that, as the Chancellor said, the Indian payments came back in the form of block sterling?

No, Sir. I can assure the hon. and gallant Member that these payments did not cost us any dollars. He is speaking of the payments on purchases by foreign clients. These were purchases by Belgian citizens. We put up no dollars, and made a profit on merchanting. I am very often asked to assure these merchanting facilities wherever possible, and that has been done in the case of silver.

Does that mean that the Belgian buyers supplied the dollars, and that none of the dollars in question came out of the English dollar pool?

That is exactly the position.