OVERSEAS STIRLING HOLDINGS from a London correspondent
The conomist quotes the Dank of Imgland Quarterly Bulletin, which, in its December issue, makes the fullest revelation of the size and distribution of sterling holdings for sighteen years. ‘Tho largest holders were (on June 30, 1963) Australia, Hongkong, Malaysia and the Porsian Gulf territories, whose combined holdings totalled £1, 307m, cach within the range of £200m. — £400m. The combined holdings of India, the Republic of Ireland and New Zealand amounted to £397m., each holding between £100m, — £200m." Of non-sterling countries, “only six countries, whose combined total was £399m.,; held over £50m., and only seven more held over £30n." The Economist points out that it is impossible to work out the exact figure for any one specific country from the information given, but it concludes: “Half of all sterling balances owned by sterling area countries, or about one third of «the total, are in tho hands of the former African colonies, the Gulf territories and countries like Malaysia, Brunei, Hongkong and Turma, These countries have in common a desperate desire to develop their economies - a desire that seems certain to draw down their sterling balances."
Socialists will note the contradiction between the economic needs of Dritein's ex-colonies and Dritish economic, military and foreign policies, demanded by the “defence of sterling" — such as military involvement in the Persian Gulf and Malaysia, the very areas which must withdraw sterling to develop.