§ 22. Mr. Eldon Griffithsasked the Chancellor of the Exchequer if he will make a statement on his recent talks with the West German Finance Minister on the subject of off-set support for British troops in Germany.
§ 24. Mr. Bruce-Gardyneasked the Chancellor of the Exchequer whether, as a result of the conversations with the German Chancellor on 24th and 28th May, he now proposes to seek a new agreement for offsetting the total foreign exchange costs of British troops in Germany during the current financial year.
§ Mr. CallaghanI have nothing to add to my reply to a similar Question by my hon. Friend for Derbyshire, South-East (Mr. Park), on 5th July and to my speech on the Second Reading of the Finance Bill on 25th May.
§ Mr. GriffithsWhile we all wish the Chancellor well in these forthcoming visits to Germany, does he really believe that against the background of the German balance of payments deficit this year of something like £500 million he is going to be able to cover the whole cost of B.A.O.R.? Is he not kidding himself in suggesting this?
§ Mr. CallaghanI am grateful for the hon. Gentleman's initial remarks, and I hope that he will not weaken my position when the negotiations start. It is still my intention to claim that the cost of the British forces in Germany should be offset by the German authorities.
§ Mr. Bruce-GardyneWill the Chancellor mind answering my Question No. 24? Is it his intention to obtain a full offset for the current financial year as he inferred in his Budget statement?
§ Mr. CallaghanI am afraid that however often the hon. Gentleman asks that 1204 question, and he has asked it three times now, I would still prefer not to answer it while I am in the middle of negotiations.
§ Mr. ShinwellWill my right hon. Friend understand that we will not take it amiss if he is a bit tough with the German Chancellor on this issue? Is he aware that the taxpayers here are meeting the costs which the Germans ought to undertake? If the only alternative is to withdraw many of our forces, we shall have to do so.
§ Mr. CallaghanI hope that my right hon. Friend's supplementary question has been noted in all the appropriate quarters.
§ Mr. Michael FootWill the Chancellor explain to the House what he will do if he does not get a complete offset, and would he recognise that there is a widespread and a growing feeling that it is absolutely mad for this country to bankrupt itself partly in allegiance to a pledge given by the Conservative Party and which Sir Winston Churchill said the day after that he would break?
§ Mr. CallaghanI have read the exchanges that took place at that time and I thought that they were extremely interesting. On the whole, it is rather more difficult to get out of engagements that have been entered into, even by one's predecessors, than it is to embark upon new ones. I welcome the encouragement of my hon. Friend.