HC Deb 25 June 1969 vol 785 cc1495-6
33. Mr. Goodhart

asked the Secretary of State for Defence whether he will make a statement about the payment of support costs for British forces in Germany.

Mr. John Morris

I presume the hon. Member is referring to the offset agreement, and, as the House will know, negotiations on a new agreement are now in progress with the Federal German Government.

Mr. Goodhart

In these negotiations, have our representatives abandoned the recent practice of trying to persuade the Germans to buy British Government securities as part of the offset agreement as this may merely increase the long-term indebtedness of the country?

Mr. Morris

I cannot comment on this matter at this stage. The hon. Member would be the first to appreciate that these negotiations are going on now.

Mr. Shinwell

In these negotiations, will the Government take a firm line with the West German Government, in view of their superior financial position and their bragging about prosperity? Could not they afford to make a larger contribution, particularly to the civilian personnel ancillary to our forces in Germany, thus helping this country?

Mr. Morris

I hope that we shall have a good contribution. Certainly I hope that the final agreement will be at least as good as last year's.

Mr. Rippon

If the hon. Gentleman cannot tell us about current negotiations, will he tell the House how much of the so-called offset costs are represented by German investments in Government bonds on which we have to pay interest, and which a future Government will have to repay altogether in about 1972?

Mr. Morris

If the right hon. and learned Gentleman puts down a Question to the responsible Minister I am sure he will get an answer to that.