Britain: An official handbook > 1977

378
BRITAIN 1977: AN OFFICIAL HANDBOOK
People living outside the scheduled territories who visit Britain temporarily
are regarded as non-resident and not subject to most of the exchange control
provisions. On the other hand, people coming to Britain from outside the
scheduled territories and intending to take up permanent residence in Britain
are normally regarded as resident, though they may be eligible for certain
exemptions from their obligations under the Exchange Control Act 1947.
Visitors to Britain may import notes in any currency, travellers’ cheques and
letters of credit without limit. On departure, visitors may take with them
sterling or scheduled territory notes up to a value of £25, foreign currency
notes up to a value of £300 and, as a concession, any foreign currency notes
which they brought in with them.
BALANCE OF PAYMENTS
Britain’s balance of payments has usually been characterised by a deficit on
visible trade offset by a surplus on invisible earnings. Estimates of the balance
of payments and its main constituent items are given in summary since 1965 in
Table 33 and in greater detail since 1973 in Tables 34 and 35. The balance of
payments statistics contain two indicators of particular importance. The first is
the balance on current account, covering both visible (exports and imports of
goods) and invisible (trade in services, investment income and transfers)
transactions. This, together with capital transfers, provides a measure of how
far Britain is paying its way abroad and thus adding to or using up overseas
assets. The second indicator is the balance for official financing. This is the
TABLE 33: United Kingdom Balance of Payments 1965-75
£ million
Balance
for
Current official
balance financing
Gold sub¬
scription
to IMF.
SDR al¬
location®
Official financing
Total Official Official
borrowing6 reserves'
1965
-26
■353
353
+ 599
-246
1970
1971
1972
1973
1974
1975
+ 733
1,084
+ 154
-736
-3,347
-1,673
+ 1,287
+ 3,146
-1,265
-789
-1,672
-1,479
133
125
■124
-1,420
-3,271
+ 1,141
+ 789
+ 1,672
+ 1,479
-1,295
-1,735
+ 449
+ 999
+ 1,751
+ 810
-125
-1,536
+ 692
-210
-79
+ 669
Source: United Kingdom Balance of Payments 1965-75
a Gold subscription to IMF in 1970 was —£38 million.
6 Drawings ( + )/ repayments (—).
c Drawings on ( + )/ additions to (—).
net result of all external flows, that is the current account, capital transfers,
investment and other capital flows (including official long-term capital
transactions, investment flows, trade credit, and changes in Britain’s net
external banking and money market liabilities in sterling and in overseas
currencies) and other flows which are unidentified transactions reflected in the
balancing item. The balance for official financing shows the impact of all
external flows on the reserves and official debt position, that is, how much is