§ 21. Mr. R. Carrasked the Secretary of State for Defence in what circumstances and on what terms the order for F111's could be cancelled; and what is his estimate of the effect such a cancellation would have on the dollar offset agreement with the United States Government.
§ Mr. HealeyWe could cancel aircraft ordered at any time up to the point of delivery. The financial and other consequences would depend on the circumstances.
§ Mr. CarrDoes the right hon. Gentleman mean by that that there is a minimum specification which the F111 must achieve and that unless it does we have a right to cancel? Can he tell the House whether that minimum specification is in any respect inferior to the operational requirement originally laid down for the TSR2?
§ Mr. HealeyThere are two separate questions there. On the first question, our right to cancel is independent of whether or not the aircraft meets the 423 specifications. We can cancel in any case, although the nature of the cancellation payments and the other consequences would depend on a large number of circumstances, many of which the right hon. Member for Mitcham (Mr. R. Carr) will be able to estimate.
§ On the question of the operational requirement for the F111K, in all respects it is lower than the requirement for the aircraft ordered for the United States Government, which gives us a substantial "buffer", in case of any drop in the performance of the American aircraft. In almost every respect—I would not be prepared to hold to every single one; there are so many possible parameters—the requirement is substantially the same as for the TSR2. In all respects the performance of the F111K is superior to the requirement for the TSR2.