asked the Minister for Finance whether he has seen statements to the effect that the British Government contemplate official discussions on the scaling-down of Britain's sterling balances; and if he will state what steps have been taken to protect the sterling balances standing to the credit of this country in Great Britain.
Ceisteanna—Questions. Oral Answers. - Sterling Balances.
I am aware that the British Government has concluded a financial agreement with the Argentine and proposes to negotiate with other countries which accumulated sterling balances during the war. As the Deputy is aware Irish sterling assets have never included any element of inter-Governmental debt. Private persons, banks and other institutions held large sterling investments and liquid assets in 1939 and the additions which accrued during the war as the result of ordinary commercial transactions did not compensate for the fall in value of their pre-war holdings. I see no reason why any special steps should be taken to protect these assets.
Have any direct representations been made to the British Government that our assets in London are in a different category from assets of many other countries? Has any claim to that effect been submitted to the British Government?
I have stated in answer to a question by Deputy Dillon that no negotiations have taken place on these questions.
The Minister is alive to the fact that very influential journals in Britain are advising the Government that, if they cannot secure agreement to scale down sterling assets in London, the alternative to repudiation is to block the assets until such time as agreement, presumably suitable to the British Government, is reached? Bearing in mind the atmosphere with which this matter is surrounded, will the Minister remain alert to the desirability of making it clear to the British Government that our assets are in a special position and should not be brought into the scaling-down process?
That should be quite apparent to the British Government.