asked the Minister for Finance if he will state on what facts he bases the assumption that dried fruit purchased in Europe or the Middle East would have to be paid for through the European Payments Union in gold, as stated by him in reply to a question on 21st May, 1952.
Ceisteanna—Questions. Oral Answers. - Dried Fruit Purchases.
Dried fruit purchases from Greece or Turkey and from places within the monetary areas of these countries, which are members of the European Payments Union, involve in present circumstances an addition to the deficits which the sterling area has to settle through the union. The April deficit of the sterling area with European Payments Union countries as a whole has to be settled by a payment of 80 per cent. in gold from the central reserves of the area. This 80 per cent. gold tranche under the European Payments Union agreement has been applied to other monthly settlements by the sterling area since the beginning of 1952. It is feared that, under the terms of the agreement, the May deficit will have to be settled as to 100 per cent. in gold.
Is the House to take it that payments from the sterling area reserve to these countries is no longer possible?
I do not understand the Deputy's question. Would he mind clarifying the point that he is trying to make?
The Minister was asked the question, what are the facts which prevent the purchase of dried fruits from Turkey and Greece.
That was not the question.
And the Minister's reply is, that it requires payments in gold.
I beg the Deputy's pardon, that was not the question which Deputy Dillon asked and which I answered.
The question was to "state on what facts he bases the assumption that dried fruits purchased in Europe or in the Middle East would have to be paid for through the European Payments Union in gold". Is not that the effect of the question?
No.
May the House take it from the Minister's answer that payments to the European Payments Union in gold from the sterling area reserve are not open now?
Again, I cannot get the Deputy's point. The Deputy seems to be under a misapprehension. The question which I was asked was to "state on what facts he bases the assumption that dried fruits purchased in Europe or the Middle East would have to be paid for through the European Payments Union in Gold". I have pointed out that, under the agreement with the European Payments Union, which we joined as a member of the sterling area—the Deputy was very much concerned that we should join it as a member of the sterling area— the May deficit of the sterling area, as a whole, including the amount for which we may be responsible ourselves, would have to be settled as to 100 per cent. in gold.
I do not know whether the House can take it from the Minister's answer that it was not possible to buy from these areas because of the settlement in gold and because the sterling area reserve was not open to us for this purpose.
I do not see what is the point in buying from an area where the purchase is going to be 40 per cent. dearer, and, again, when that 40 per cent. dearer has to be paid for in gold.
Who is in charge of sterling, especially gold?
The Deputy had better ask Deputy MacBride who signed the agreement.
We ought to have a little more clearness about these things.
The Deputy should get that from Deputy MacBride whom he supported.
Are you suggesting that we should leave the sterling area?