The present Commentary may well begin as the last one ended, with a reminder that $1,000 million is due to be repaid to the International Monetary Fund in less than two and a half years, and a further $1,400 million in less than five years. In addition, medium-term credits totalling $120 million must be repaid to Switzerland; and, in the short-term management of sterling, use has been made of swap facilities. Against these liabilities there are of course significant reserves, and the portfolio of dollar securities not yet brought formally into the reserves; furthermore, on the widest view of the balance-sheet the United Kingdom is a net creditor, not a net debtor, internationally. None the less, these new international debts incurred by the United Kingdom require that primacy in economic policy be given to the restoration of a surplus in the balance of payments. The further far-reaching measures of control introduced by the Government on 27th July clearly reflect this priority. The measures are necessary not only to enable the United Kingdom to meet its external obligations, but also to establish a foundation for enduring economic growth at home.
Published on
01 September 1965
Commentary