HC Deb 11 June 1952 vol 502 cc194-6
32. Mr. Mikardo

asked the Secretary of State for Foreign Affairs what binding agreements on the financial burden in respect of our troops in Germany after June, 1953, have been, or will be, arrived at before the proposal to ratify the West-German Treaty is put before the House.

Mr. Eden

None, Sir.

Mr. Mikardo

At some time between now and the debate we are to have about ratification will the right hon. Gentleman make a full statement to the House on what will be our financial obligations in hard currency arising out of these arrangements?

Mr. Eden

Is the hon. Gentleman referring to after June, 1953?

Mr. Mikardo

Yes, Sir.

Mr. Eden

In that respect, it is impossible for anybody to give an estimate at this time because, as I explained to the House yesterday, the assessments of all the nations will be made for next year as it was for last year. What we have done is to make clear that we cannot shoulder additional burdens to those that we are now carrying and that there will have to be some further re-apportionment of the financial burden. Nobody can say exactly how this will fall out until it is made in June, 1953.

Mr. Gaitskell

Is the Foreign Secretary aware that the late Government made it perfectly plain that we could not shoulder any additional financial burdens as a result of German re-armament, particularly if they fell on our balance of payments? Is it a fact that the present Government are adhering to that point of view and that there is no reason for us to suppose that, when the discussions in N.A.T.O. take place, any additional financial burdens will be placed upon us?

Mr. Eden

The right hon. Gentleman is right. We have made our position plain on this matter as, indeed, I acknowledge that the late Government certainly did. The difficulty is to fix any figure as far ahead as this because, amongst other considerations, nobody can tell what the Germans' own charges may be in respect of the period after June, 1953, nor can they tell the extent of the help in materials which they may receive from other sources, and which may enable them to give more help to the N.A.T.O. Forces. These are matters which are being considered at the present time.

Mr. Mikardo

Whilst we all appreciate what the right hon. Gentleman says about the difficulty of fixing a figure for an indeterminate commitment in advance, does he not fix such a figure when he says that we do not in any event intend to accept any additional commitment? Does he not by that fix the figure at nought, and if that is the case are we not being a little silly in entering into obligations in advance of having a more clear cut understanding about this repartition of the financial burden?

Mr. Eden

The House will be aware that a N.A.T.O. review is carried out annually by an international body, and it would be quite impossible for us to make an estimate in advance of the general international review, which does not take place until next year. There are other elements of uncertainty as well, such as how far we can reduce our own costs in Germany and an active investigation is being made about that with. I believe, useful results. However, I cannot commit us one way or the other in respect of a date in June of next year.

Mr. Gaitskell

May we take it that discussion of how the German problem is to be dealt with will be part of the wider review of the obligations of the different N.A.T.O. and other countries?

Mr. Eden

The right hon. Gentleman is entirely correct. That is the whole problem and that is why we cannot take it separately as far ahead as June of next year.

33. Mr. Mikardo

asked the Secretary of State for Foreign Affairs what the payments of the West German Federal Government, on behalf, and for the benefit, of our troops and other administration in Germany amounted to in the financial years 1948–49, 1949–50, 1950–51, 1951–52, the first month of 1952–53, and in the calendar years 1948, 1949, 1950, 1951 and 1952, respectively.

Mr. Nutting

In the financial year 1948–49, the figure was 2,448 million marks; in 1949–50 1,721 million; in 1950–51 1,709 million; and in 1951–52 1,321 million. The estimated charge for April, 1952, is 84 million. It is not possible to give figures by calendar years.

Mr. Mikardo

Can the hon. Gentleman say what will be the effect on our balance of payments of the cessation of receipts of this very substantial amount, amounting to between £120 million and £200 million sterling? Will not the cessation of these payments impose a great strain upon our external account, and can the hon. Gentleman say how it comes about that we shall probably be paying the Germans rent for the barracks in Germany for our troops while in this country we house the troops of other N.A.T.O. countries without making any such charge?

Mr. Nutting

My right hon. Friend dealt with the whole question of the financial situation in regard to our forces in Germany in answer to a number of supplementary questions yesterday, and I have nothing to add to what he said.

34. Mr. Fenner Brockway

asked the Secretary of State for Foreign Affairs if he will make a statement regarding the decisions made during his recent visits to Bonn and Paris.

Mr. Eden

I would refer the hon. Member to the statement I made yesterday.

Mr. Brockway

I heard with great interest the statement which the right hon. Gentleman made. Is it possible for the right hon. Gentleman to add to the reply which he made to the supplementary question regarding the possibility of a Four Power Conference rather than continuing exchange of notes?

Mr. Eden

I made a comment yesterday. I think I went as far as I should; perhaps rather further than I ought.

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