§ 2. Mr. Pattieasked the Secretary of State for Defence what progress has been made with the sales of the Jaguar aircraft to the Indian Air Force: and if he will make a statement.
§ The Minister of State for Defence (Mr. William Rodgers)We are aware of the Indian interest in Jaguar, but it is not our practice to disclose details of prospective or actual sales of defence equipment.
§ Mr. PattieDoes the Minister agree that, as the Indian Air Force is larger than the Royal Air Force, this contract would represent great benefit to the British aerospace industry, not to mention potential sales on the Indian subcontinent? Will he undertake to impress upon the Treasury that any refusal by that Department to grant the Indian Government the credit terms they are seeking would not be in Britain's best interests?
§ Mr. RodgersThe hon. Gentleman is quite right to emphasise the importance of a sale of this kind. We have to take into account not only, as with all defence sales, political and security factors but also our own economic position and how far the Indian Government might be able to meet what we would regard as proper commercial credit terms.
§ Mr. TebbitCan the Minister say whether there are any political objections to this arms sale?
§ Mr. RodgersNo. We have to look at this sale and all others in terms of the total package and what it represents. We do not underestimate the significance that this could have for the British aircraft industry.