§ 5. Mr. Emrys Hughesasked the Lord Privy Seal why he applied to the North Atlantic Council for a certificate of need arising out of military expenditure in Western Germany.
§ Mr. HeathI would refer the hon. Gentleman to my right hon. and learned 408 Friend the Chancellor of the Exchequer's statement to the House on 25th July on the application which was made to the North Atlantic Treaty Organisation last July for a review of the financial conditions under which our forces are maintained on the continent.
§ Mr. HughesDoes this mean that the Government are so poor and our economic situation is so desperate that we had to go to the international national assistance board and plead poverty, saying that we could not incur this extra military expenditure? Does the right hon. Gentleman think that this military expenditure is likely to go up or down?
§ Mr. HeathThe impact on the balance of payments as a result of keeping our forces under N.A.T.O. in Europe was such that we felt justified in making this application. It was shown to be justified by the investigation made by N.A.T.O.
§ Mr. PagetIs it not humiliating that, after some nine years of this Government, we have to put up our hands and ask for payment to perform only a little more than half of what we undertook by Treaty to do?
§ Mr. HeathThis is not a budgetary question of our national finances but an exchange question. It is a very serious problem and we are seeking assistance from a body of which a large number of people are members.
§ Mr. JayIs the right hon. Gentleman suggesting that the Government have no responsibility for, or control over, our exchange situation abroad?