asked the Chancellor of the Exchequer whether he contemplates making any change in the amount of capital which emigrants to countries out- side the sterling area may have transferred to their new country.

Yes, Sir. I have come to the conclusion with regret that we can no longer afford the present scale of allowance, which is a maximum of £5,000 payable in four equal annual instalments. I have accordingly decided to reduce the amount, as from today, to a maximum of £1,000, which will also be payable in four equal annual instalments. This reduction will not be applied to emigrants already overseas, or to intending emigrants who have already lodged formal application with their bankers. After the probationary period of four years an emigrant will continue, as now, to be redesignated as a nonresident and will be able to have his full income transferred. I should emphasise that it is not my intention to discourage emigration. In our present circumstances, however, I am bound to look at every possible economy in foreign currency expenditure and this is a source from which substantial savings can be effected, particularly in dollars.

Will that new regulation apply to men who want to emigrate to South Africa and who intend to remain there permanently in order to start a new business?

It applies to all emigrants.

Will the right hon. and learned Gentleman say whether he has been in consultation with the Canadian Government over this, and how will it affect the plans that have been made between the Canadian Government and His Majesty's Government in Britain about emigration to Canada?

Yes, Sir, we have been in consultation with them.

Did the right hon. and learned Gentleman really mean that it would apply to South Africa? How can it, when it is in the sterling area?

It applies to the maximum amount which is allowed to be taken by any emigrant out of this country.

The Chancellor has told us that he has been in consultation with the Canadian Government. Will he give an assurance that the Canadian Government agreed to this modification, because at the moment it is of the utmost importance that emigration should continue.

And as the hon. and gallant Gentleman knows very well it is of the utmost importance that we should not waste dollars.

What does the right hon. and learned Gentleman expect to save annually in dollar exchange?

We hope to save about three to four million pounds worth of dollars.