HC Deb 22 June 1965 vol 714 cc1443-4
7. Mr. Barnett

asked the Chancellor of the Exchequer, in framing Her Majesty's Government's financial policy, what consideration he is giving to the financial implications of defence expenditure east of Suez.

Mr. Callaghan

The current review of our defence commitments, including those east of Suez, will take full account of the needs of the economic situation.

Mr. Barnett

I am aware of the defence review, but would not my right hon. Friend agree that it is not enough simply to make small cuts by way of cost efficiency and that what is needed is cuts in our commitments? Will he make representations to his right hon. Friends particularly about cutting the commitments of our defence rôle east of Suez?

Mr. Callaghan

I think that it would be wrong—and this is in part an answer to questions which were asked earlier—to make forecasts about cuts in commitments until a very thorough examination of the whole position has been undertaken. It is for that reason that it is simply not possible to make swift, slashing cuts in overseas expenditure.

Mr. Royle

When will the right hon. Gentleman be able to tell the House that the review is concluded? How long have we to wait?

Mr. Callaghan

That is a matter for my right hon. Friend the Secretary of State for Defence, but I certainly hope that it will be the autumn.