HC Deb 25 June 1969 vol 785 cc1502-3
45. Sir C. Osborne

asked the Secretary of State for Defence what is his revised estimate of the total cost of American military aircraft to be purchased for use by the United Kingdom for 1969; and what was the figure for each of the three preceding years.

Mr. John Morris

The estimate for 1969 is £61 million. The figures for the three preceding years are: 1968, £34 million; 1967, £15 million; 1966, £3 million. The figures represent the repayment of sums drawn under the American aircraft credit, together with payment of interest, and cash payment for certain spares not covered by credit, and the payments arising from the cancelled contract for the F111. They do not include the cost of British-produced items.

Sir C. Osborne

As the country is being compelled more and more to borrow money from the American bankers and other international bankers, can we afford to keep buying these American aircraft?

Mr. Morris

I respect the hon. Gentleman for his views, but I am sure that he will understand that the bulk of the deliveries of these aircraft have already taken place. This matter was fully canvassed in 1966 when the Military Aircraft (Loans) Bill was before the House.

Mr. Corfield

Would the hon. Gentleman liaise with his colleagues at the Poard of Trade to see whether these figures could be more clearly stated in so far as they affect the balance of payments? At the moment it is impossible, except after a very long calculation, to see whether the balance of payments figures, as published, bring those payments into effect and, if so, what the effect is.

Mr. Morris

My right hon. Friend the President of the Board of Trade has made the position clear from time to time. However, I will pass the hon. Gentleman's remarks to my right hon. Friend if he needs further clarification.