Overseas Expenditure

HC Deb 27 June 1961 vol 643 cc183-4

15. Mr. Lipton

asked the Chancellor of the Exchequer what cuts he proposes to make in Government expenditure overseas.

Mr. Barber

I have nothing to add at this stage to the reply my right hon. and learned Friend gave to the hon. Member for Louth (Sir C. Osborne) on 20th June.

Mr. Lipton

Is not that rather poor progress? Will the Economic Secretary press on the Chancellor and the Government the desirability of putting right at the top of their priority list the cost of British Forces in Germany where we could save about £50 million a year straight away? Will he not, in this connection, follow the very good example of the American Government, who are also withdrawing 20,000 troops from this country, and does he not agree that the sooner all foreign troops are taken from all these countries the better?

Mr. Barber

What is important is that the Federal Republic of Germany should, in one form or another, make a full contribution towards solving the problems of international imbalance.

Mr. Marquand

Will the hon. Gentleman make it quite clear that no cult whatever is intended in economic aid from this country to the under-developed countries?

Mr. Barber

All forms of Government expenditure overseas will be reviewed by my right hon. and learned Friend. We shall have to consider very carefully what future level of overseas expenditure we can afford.

Mr. H. Wilson

Whilst we welcome this interest in a subject that we on this side raised in February and in the Budget debate with no response what- ever from the Government, may I ask whether the hon. Gentleman will see that any reductions are concentrated on those elements in our overseas expenditure that really ought to be reduced, including that referred to by my hon. Friend the Member for Brixton (Mr. Lipton)? Also, when looking at the question generally, will he take an entirely fresh look at the whole business of the failure of British firms to bring back their earnings from trade as a result of overseas corporations?

Mr. Barber

This Question refers to Government expenditure overseas, and I can assure the House that the review that my right hon. and learned Friend is making covers all forms of Government overseas expenditure.