‘No Devaluation’, Says Wilson

Press, Volume CIV, Issue 30823, 7 August 1965, Page 15

‘No Devaluation’, Says Wilson

(N.Z.P.A.- Reuter—Copyright)

LONDON, August 6

The Prime Minister, Mr Wilson, sought to restore confidence in sterling and relieve continued pressure on the £ by announcing yesterday in unequivocal terms that there would be no devaluation.

As the currency slid back still further on the London Foreign Exchange Marke' Mr Wilson told Parliament that his nine-month-old Labour Government was determined to maintain its value. He described as “highlv neurotic” a report which swept London's flnancia l quarter that the Governor of 'he Rank of England, Lord Cromer, had urged the Gov rnment to devaluate. He declared that it was “an extraordinary suggestion amounting almost to slander of the Governor, when it is nerfectlv well known that he is as determined to maintain the value of the £ as is the Government ” Dollar Drain But pressure on the £. which has buil* up this week after disc'osure of yet another big drain on the gold and dol-

lar reserves during July, was igain reported to have forced the Bank of , England to step into the market to support both immediate and future rates. In spite of this support, the £ dipped from 2.7916 dollars to 2 7904 dollars. At one point vesterday it sank to 2.7902 dollars—the lowest it has been since July 26, the day before the Government announced new measures to restrict credit and public spending.