HC Deb 25 October 1966 vol 734 cc804-5
8. Mr. Bruce-Gardyne

asked the Chancellor of the Exchequer when he will conclude negotiations with the Federal German Government regarding the foreign exchange cost of British troops in Germany; and whether it is still his policy to ensure relief from the whole of this cost.

16. Mr. Dalyell

asked the Chancellor of the Exchequer if he will make a statement on his talks with the German Government on 13th–14th October on the financial arrangements for the British Army of the Rhine after March 1967.

Mr. Callaghan

It remains the Government's policy that these costs should by one means or another be covered in full. It is my hope that the tripartite talks proposed by the U.S. Government will lead to a satisfactory outcome at an early date.

Mr. Bruce-Gardyne

Does the Chancellor recall that, in his Budget Statement in May, he said that he intended to achieve agreement on this by the autumn? Can we take it that the autumn will run a little late this year?

Mr. Callaghan

Yes, Sir. I think we can.

Mr. Barnett

Could my right hon. Friend tell us how much has been utilised against the offset arrangements already in existence for the two years to March 1966?

Mr. Callaghan

I should be glad if my hon. Friend would put that Question down. I have a figure in my mind, but I prefer not to quote it at the moment.

Mr. Frank Allaun

Will my right hon. Friend tell the Bonn Government that, if they are prepared to cover only half the costs, we shall reduce our military expenditure in Germany equally by half?

Mr. Callaghan

That position has been made clear, not in relation to the percentages, but to the necessity for getting full cover for the troops in Germany.