HC Deb 16 December 1965 vol 722 cc1455-6
Q3. Mr. Zilliacus

asked the Prime Minister whether the public statements by the Chancellor of the Exchequer, made during an authorised interview published verbatim by the German magazineDer Spiegelon 10th November on the effect that Great Britain's overseas defence burden has had on sterling and the balance of payments, represent the policy of Her Majesty's Government.

Mr. George Brown

I have been asked to reply.

Yes, Sir.

Mr. Zilliacus

Was my right hon. Friend's attention drawn to the passage of the Chancellor of the Exchequer's interview in which he said that if it were not for the great defence burden we would never have had a sterling crisis and that if that burden were not still so heavy the balance of payments deficit would already have been covered? Does my right hon. Friend also recollect that, on 27th July last, the Chancelor told the House that we must shelve or straitjacket some of our social legislation because of the balance of payments deficit? When are the Government——

Mr. Speaker

Order. We cannot have a speech at Question Time.

Mr. Brown

The answer is that, of course, if we did not have to spend so much overseas on defence our balance of payments situation would be very much easier. Certainly a number of other countries in the world might consider this and see how they could help with their policies.

Mr. Lubbock

Was the Chancellor of the Exchequer consulted about the use of £3½ million in foreign exchange to buy islands in the Indian Ocean? Why was this decision taken in advance of the defence review?

Mr. Brown

That is a different question. If the hon. Gentleman will put it on the Order Paper I will do my best to reply.

Sir D. Renton

Will the First Secretary of State say quite clearly whether he considers that it is the first duty of any Government of this country to ensure that we have adequate defences and play an adequate part in preserving the peace of the world?

Mr. Brown

I do not know how many first duties there are, but two there certainly are. The first is to defend the nation and the second is to be able to afford to defend the nation. We are trying to do both.