§ 44. Mr. Bruce-Gardyneasked the Chancellor of the Exchequer what is his latest estimate of German off-set payments against the foreign exchange cost of British forces in Germany in and in respect of the two-year period ending 31st March, 1966.
§ The Chief Secretary to the Treasury (Mr. John Diamond)£116 million.
§ 45. Mr. Bruce-Gardyneasked the Chancellor of the Exchequer what representations he has made to the Federal German Government regarding the shortfall in fulfilment of the Anglo-German Agreement on German purchases to offset the foreign exchange costs of British forces in Germany during the two-year period to 31st March, 1966; and, in view of the anticipated rise in the foreign exchange cost of these forces during the 1234 current financial year, what representations he is making to the Federal German Government to avoid an additional deterioration on balance of payments account.
§ Mr. DiamondI do not expect any shortfall under the current Offset Agreement.
§ Mr. Bruce-GardyneHow does the Chief Secretary reconcile that second reply with his Answer to me last week that only £24 million of the £42 million promised by the German Government last summer and supposed to be used up by the end of March has so far been used up? Surely this indicates a serious shortfall? Would he not agree that the forecast which he gave for expenditure next year suggests a balance of payments burden in 1966-67 which will be considerably heavier than it was in the previous period?
§ Mr. DiamondThe forecast of expenditure, although somewhat heavier than in the previous period, is no heavier than that which it was estimated to be at the time the negotiations were undertaken and it was the basis on which the figures were arrived at.
§ Mr. ShinwellDoes not my right hon. Friend recognise that we have not received satisfactory compensation from the West German Government for the services rendered by our Forces and that we have had this answer from respective Governments for the past 13 or 14 years?
§ Mr. DiamondI realise that this is a matter with which Members on all sides of the House are closely concerned and, indeed, the Government are closely concerned with it too.
§ Mr. LiptonWould not the simplest solution to the problem be the recall of British troops in Germany entirely?
§ Mr. DiamondIt would be anything but simple.
§ Mr. Bruce-GardyneIn view of the unsatisfactory nature of the reply, I beg to give notice that I shall raise the matter at the earliest possible opportunity.