§ 12. Mr. Martenasked the Secretary of State for Defence what is the estimated increase in the total sum of the defence budget for 1969–70 if cash was paid by Great Britain on delivery for aircraft purchased for the Royal Air Force and Royal Navy from the United States of America and on the percentage of the gross national product devoted to the defence budget.
§ Mr. Healey£73½; million and under 0.2 per cent.
§ Mr. MartenOn a study of the previous Written Answers, should not the answer be much nearer £200 million, and, if that be so, is not the statement that defence expenditure has been reduced rather misleading?
§ Mr. HealeyWith respect, it is not. The answer is £73½ million, and under 0.2 per cent.
§ 19. Sir G. Nabarroasked the Secretary of State for Defence what sums were spent on United States aircraft in 1968–69 and what sums he intends to spend in 1969–70 and in what ways he is contributing to imports substitution.
§ Mr. John MorrisIn 1968–69, £48 million, and an estimated £50 million in 1969–70. These amounts represent the repayment of sums drawn under the 432 American aircraft credit, together with payment of interest, cash payment for certain spares not covered by the credit agreement, and the payments arising from the cancelled contract for the F111. They do not include the cost of British-produced items.
On the second part of the Question, I have nothing to add to the reply I gave to the hon. Member on 13th November last.—[Vol. 773, c. 378–9.]
§ Sir G. NabarroBut has not the economic position worsened since 13th November last, and is it not the duty of the Minister of Defence to try to make a contribution, a real financial and economic contribution, to the policies of his own Government in matters of import substitution?
§ Mr. MorrisOne is always conscious of the need for import substitution. I am not sure what the hon. Gentleman is now suggesting—whether we should cancel delivery of the Hercules or the Phantom. The Hercules has already been completed, and the Phantom order is well on its way to completion.
§ Sir Ian Orr-EwingWhat is the sum now outstanding for the remaining purchase of United States military aircraft? Have any British Government ever spent so much foreign exchange on not having weapons with which to equip their forces?
§ Mr. MorrisThe hon. and gallant Member for Winchester has a Question down today for Written Answer about the sum outstanding. I am sure that he will not object if I give part of the Answer now in reply to the hon. Gentleman. The sum still outstanding on amounts borrowed up to 30th April, 1969, is £237 million.