HC Deb 18 June 1958 vol 589 cc1113-4
45. Mr. Fernyhough

asked the Minister of Defence, in view of the fact that £39,500,000 was included in the current year's defence Estimates as the German contribution towards the cost of British forces stationed in Germany and that the direct contribution from the Germans will now be only £12 million, to what extent the defence costs will be reduced accordingly.

Mr. Sandys

I would refer the hon. Member to the full statement on this subject made by my right hon. Friend the Minister of State for Foreign Affairs on 10th June.

Mr. Fernyhough

The right hon. Gentleman's reply does not answer my Question. I asked him whether, as the result of the bad bargain we struck over support costs, the defence programme would be reduced. If it is not to be reduced, will he say whether he will have to bring in Supplementary Estimates? Does not he think that it would pay the Government to show a little more toughness in these negotiations—the same as they have inspired Sir John Elliot to show towards the London busmen?

Mr. Sandys

If the hon. Gentleman reads the statement to which I have referred he will find that it covers the point raised in his Question and a great deal more. So far as Supplementary Estimates are concerned, no doubt Supplementary Estimates will have to be presented to Parliament. Among other things, the £12 million referred to in the Question is a down payment for each of the next three years and is the only element in the arrangement which can be regarded as an appropriation-in-aid. The other benefits received under the agreement do not reckon for that purpose.

Mr. de Freitas: Will the Supplementary Estimates be in respect of any Service in particular, or of all the Services, or some of them?

Mr. Sandys

All or some.