asked the Chancellor of the Exchequer whether he is now able to make a statement on his conversation with the Government of Brazil to liquify sterling balances by the sale of British utility assets in Brazil.

No, Sir. Discussions on Brazilian sterling balances have not yet been concluded. They are not based upon the sale of British assets in Brazil.

Is the Financial Secretary aware that authoritative statements have been made in Brazil to the effect that these balances are to be made available as loans to British utilities; and as such procedure will give rise to unrequited exports, will he give an assurance that this will not be permitted by His Majesty's Government?

The hon. and gallant Member must be referring to statements that have appeared, due to a wrong interpretation having been placed upon certain words. I can assure the hon. and gallant Gentleman and the House that that matter has now been put right.

asked the Chancellor of the Exchequer if His Majesty's Government will ensure that, after 15th July, 1947, sterling credits will not be granted to those countries who convert their sterling balances under the Anglo-American Financial Agreement.

No, Sir. The hon. and gallant Member's suggestion, if carried out literally, would reduce our export trade to a cash and carry basis, which would not be in our interest.

Can the Financial Secretary give any assurance that, since the moneys we have lent will be used to finance exports from this country whilst moneys received by the countries concerned from their imports will be convertible under the Anglo-American Agreement, no additional strain on our dollar resources will be incurred?

All credit arrangements with countries outside the sterling area—and so far as the sterling area is concerned I gather that is not worrying the hon. and gallant Gentleman—

It is.

—are subject to the Exchange Control Act which was passed quite recently.