§ 3. Mr. Wingfield Digbyasked the Chancellor of the Exchequer, in view of his policy of curtailing overseas investment and spending, what is the policy of Her Majesty's Government with regard to the reduction of its expenditure overseas.
§ Mr. CallaghanThe Government's policy is to reduce the outflow of capital from this country in order to get the balance of payments right. So far as Government overseas expenditure is concerned, the policy is to reduce it where-ever possible.
§ Mr. DigbyDoes not the Chancellor think that the time has come for deeds, not words? The Government are constantly exhorting other people to do these things, but all that we are told by Ministers is about endless reviews by Her Majesty's Government.
§ Mr. CallaghanIf the previous Administration had not allowed military and other expenditures to rise so rapidly, I would not now be in the difficulty of cutting them down.
§ Mr. RidsdaleWill the right hon. Gentleman say how much expenditure overseas will increase since the statement yesterday on overseas development?
§ Mr. CallaghanYes. The Answer was given yesterday. It is about£31 million for the United Nations. As far as interest-free loans instead of a waiver of interest are concerned, they will cost nothing.
§ Sir C. OsborneWhy does not the Chancellor take the advice of the Governor of the Bank of England and cut expenditure as the only way in which to get our balances right?
§ Mr. CallaghanThe hon. Gentleman seems to be emulating Rip van Winkle. The whole purpose of the Government exercise on overseas expenditure is to try to cut it down.