MAINTAINED, NEVERTHELESS, THE RECENT RUN OF RETTER FIGURES HAS
NATURALLY BEEN AN IMPORTANT FACTOR IN CONSIDERING WHETHER THE
IMPORT DEPOSIT SCHEME SHOULD BE ALLOWED TO LAPSE WHEN THE PRESENT AC
RUNS OUT ON 4TH DECEMBER.
3.
THERE IS NO WAY OF QUANTIFYING THE PRECISE EFFECT OF IMPORT
DEPOSITS, BUT THERE CAN BE. NO DOUBT THAT THE SCHEME HAS HAD A
USEFUL RESTRAINING EFFECT OV IMPORTS, AS WELL AS RE-INFORCING CONTROL OVER DOMESTIC CREDIT, OUR TRADING PARTNERS, PARTICULARLY IN EFTA AND THE IRISH REPUBLIC, HAVE BEEN MOST UNDERSTANDING IN THEIR ACCEPTANCE OF THE SCHEME, THOUGH OF COURSE I FULLY UNDERSTAND
THEIR DISLIKE FOR IT AND THEIR WISH THAT IT SHOULD BE BROUGHT
TO AN END AS SOON AS OUR POSITION ALLOWS.
4
OUR GREATER STRENGTH MEANS THAT WE CAN NOW TOLERATE SOME ABATEMENT OF THE SCHEME, AND THAT WE CAN LOOK FORWARD TO ITS TOTAL PHASING-OUT, BUT IT WOULD BE FOOLISH COMPLETELY TO REVERSE
OUR POLICIES AS SOON AS THEY SHOW SIGNS OF SUCCEEDING. THE
GOVERNMENT HAVE THEREFORE DECIDED THAT THE RIGHT COURSE IS TO TAKE POWERS TO CONTINUE THE SCHEME FOR A FURTHER 12 MONTHS, BUT FOR THE RATE OF DEPOSIT TO BE REDUCED FROM 50 TO 40 PER CENT, THE
PERIOD OF DEPOSIT 180 DAYS WILL REMAIN UNCHANGED.
5. THE TRAVEL ALLOWANCE HAS TO BE CONSIDERED AGAINST THE SAME BACKGROUND. MUCH AS I SHOULD LIKE TO REMOVE THE RESTRICTIONS, I AM SATISFIED THAT THEY SAVE SUBSTANTIAL SUMS IN FOREIGN EXCHANGE AND
THAT IT WOULD BE PREMATURE TO REMOVE THEM NOW. THE RESTRICTIONS
ON FOREIGN CURRENCY EXPENDITURE FOR TRAVEL (AND ON CASH GIFTS TO THE NON-STERLING AREA) WILL THEREFORE REMAIN UNALTERED FOR THE TIME BEING.
1 SMALL KEEP THE MATTER UNDER CONTINUOUS REVIEW, AND HOPE
TO BE ABLE TO ADOLISH THE RESTRICTIONS BEFORE LONG. BUT IT WOULD BE
WRONG TO DO SO UNTIL IT IS QUITE CLEAR THAT THE IMPROVEMENT IN OUR
BALANCE OF PAYMENTS 15 A SECURE ONE WHICH WE SHALL BE ABLE TO
MAINTAIN INTO THE FORESEEABLE FUTURE, THAT IS THE END TO WHICH ALL OUR POLICIES OVER THE LAST TWO YEARS HAVE BEEN DIRECTED, AND I DO NO INTEND TO CHANGE THEM JUST AS THEY ARE SHOWING UNMISTAKEABLE SIGNS OF SUCCESS.
ENDS.
STEWART
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