HC Deb 19 July 1967 vol 750 cc2126-8
29. Mr. Anthony Boyle

asked the President of the Board of Trade what request he has received from the British Overseas Airways Corporation to be allowed to invest in the development of the American supersonic transport in order to maintain its delivery position for this aircraft.

Mr. Jay

None, Sir. Like all other airline customers B.O.A.C. is due to pay by 31st October a further 100,000 U.S. dollars per aircraft to maintain its delivery position. Separately, B.O.A.C. has been invited to invest voluntarily 1 million U.S. dollars per aircraft in development costs. B.O.A.C. with Air France, is considering this invitation and I shall be consulted.

Mr. Royle

Would the right hon. Gentleman give an assurance that, when he is consulted, he will not allow B.O.A.C. to invest this money in an aircraft which will be a rival to the Anglo-French Concord aircraft? When does he reckon that B.O.A.C. will put in a firm order for the Concord aircraft?

Mr. Jay

I would not answer the second question without notice. On the first question, we must allow B.O.A.C., together with its competitor airlines, to provide for all contingencies.

Mr. Edwin Brooks

is my right hon. Friend aware that for cool cheek this American demand takes some beating? Would he consider convening an international conference of airline operators to consider a co-ordinated plan to resist this American blackmail?

Mr. Jay

It is not unknown in the civil aviation industry for a contribution to be made for a place in the queue for these aircraft.

Mr. Hastings

In view of the crisis in the British industry due to the loss of the A-FVG project, is it not most unwise to permit B.O.A.C. to invest in American research and development of any kind at this juncture?

Mr. Jay

This is not an unprecedented procedure in the industry. The hon. Gentleman is greatly exaggerating in speaking of a crisis in the British industry apropos the cancellation of one type of aircraft.

Sir A. V. Harvey

Is the right hon. Gentleman aware that the projected American supersonic aircraft is considerably bigger than Concord and, therefore, the supersonic bang will be that much worse? In view of what has happened this week, will he take that seriously into account?

Mr. Jay

I am sure that the hon. Gentleman is more expert on supersonic bangs than I am, but I would not assume that there was an exact mathematical correlation.

Mr. Royle

On a point of order. In view of the unsatisfactory nature of the original reply, I beg to give notice that I will raise the matter on the adjournment at the earliest possible moment.