HC Deb 09 August 1966 vol 733 cc1385-6
34. Rear-Admiral Morgan Giles

asked the Chancellor of the Exchequer following the Government's new economic measures, what is now their policy regarding the percentage of the gross national product which is spent on defence.

Mr. Callaghan

The policy of Her Majesty's Government is to reduce the proportion of defence expenditure to the gross national product to a level no higher than 6 per cent. by 1969–70.

Rear-Admiral Morgan Giles

This will involve a reduction. Will the Chancellor always bear in mind what was said in the Government's Defence Review, which emphasised that British Armed Forces overseas play a very important part in the maintenance of world peace? The Review also said that no country with a sense of international responsibility would abandon such a task.

Mr. Callaghan

Yes, Sir. The Answer I gave was based on the White Paper. The Review also says that it is important that our strength should not be overstrained. It is certainly the policy of the Government that our contribution to world peace-keeping should be as great as, though not necessarily greater than, all the other nations of the world.

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