§ 30. Mr. Bruce-Gardyneasked the Chancellor of the Exchequer whether he has yet received the reaction of the Federal German Government to his proposals for the full coverage of the foreign exchange costs of the British Army of the Rhine; and if he will make a statement.
§ Mr. CallaghanI am not yet ready to make a statement on this matter.
§ Mr. Bruce-GardyneDoes the Chancellor of the Exchequer still hope to achieve a full offset of the exchange costs of the Rhine Army by 30th September, or has this hope been abandoned, as some reports have suggested? Will he bear in mind that, if all the cuts in Government overseas expenditure are to fall in Europe, this will throw a very sinister light on the Government's priorities?
§ Mr. CallaghanI do not think that any question of a date for recovering the full amount was put on the question of the offset payments, but it is certainly our intention in these negotiations to recover the costs in full, by one means or another. I note what the hon. Gentleman said in the second part of his supplementary question.
§ Mr. ShinwellHas my right hon. Friend observed that the Federal Government are now pleading economic difficulties as an excuse for not meeting the foreign exchange costs? To relieve them of some of their difficulties, if they are not prepared to pay up, can we have the troops brought home?
§ Mr. CallaghanIt is the policy of Her Majesty's Government, in so far as it is not possible to offset the total cost of these troops, that they should be brought home.
§ Mr. Iain MacleodAs the Chancellor has relied heavily on this matter ever since the Budget, will he be able to make a statement before we go into Recess for the summer?
§ Mr. CallaghanNo, I do not think so. We have had a reply from the German Government, and this is now being considered, but the negotiations will go on certainly until the early autumn.