We are grateful once again to Canada and the U.K. for making advance contributions to IDA to make up for the delay in the U.S. contribution. But the fact that the third replenishment has faced the same difficulties as the second one leads us to the conclusion that something needs to be done to remove the present uncertainty and put the funding of IDA on a firmer and continuing basis. That is why we favour the link between SDRs and development finance. Some scheme should be devised to lower the rates of interest on bank loans. UNCTAD III would be in vain if it cannot settle some of these issues, including some definite code of conduct on the level and terms of bilateral aid and some definite norms for genuine debt relief by bringing the terms of all past loans on par with the norms now accepted or with the present practice if it happens to be better.
On the future role of sterling, I will make only one comment. As long as countries have to hold reserves, these reserves have to be held in sterling or in something else. and if the U.K. does not wish the sterling to perform the same role as at present, we are quite prepared to consider alternative arrangements.
There is also another very important point. If national currencies are no longer to be used as reserves, let us not create the same problems over again by talking of some other currency or cocktail of currencies acting as reserves in the future. 'Exit sterling' should not be a prelude to 'enter Europa'. Since sterling or dollar cannot be replaced by gold, the only other alternative is SDRs. But the SDRs earn a low rate of interest. If the present obligations of the U.K. or the U.S. which are both highly liquid and high interest-bearing are to be replaced, the countries concerned deserve adequate compensation both in terms of liquidity and return. As far as the return is concerned, perhaps some mechanism can be devised whereby it is provided not by the international monetary system but by the countries which are enabled to pass on what they regard as a burden to the international community.
Finally, if I may make a few remarks on economic conditions in India. I am happy to say that we have had yet another good agricultural year with foodgrain output reaching some 108 million tonnes. There are today some 9 million tonnes of wheat and rice in stock in India and we are now able, as we had hoped for earlier, to dispense with food aid altogether from next year onwards. This is, therefore, a good occasion for me to thank our Commonwealth partners, notably Canada and Australia, who have given us valuable food aid in the past. I hope they feel now relieved that we too share with them, at least for the present, the burden of carrying abundant stocks of grain.