§ 5. Mr. Thorneasked the Secretary of State for Foreign and Commonwealth Affairs whether, in the light of recent events concerning the treatment of British citizens in Chile, he will now impound the two submarines which were intended for Chile and ensure their retention in the United Kingdom.
§ Mr. ThorneWill my right hon. Friend take into account whilst reviewing this subject that torture and crimes by the Chilean junta continue and that to allow 404 the submarines to leave for Chilean shores is almost tantamount to supporting its activities?
Mr. CallaghanI do not think that the last part of my hon. Friend's question follows from the first. There is strong feeling about the actions of the Chilean Government, which I wholly share. However, when considering these matters we must realise that a different category is involved when we are talking about long-standing and binding contracts negotiated many years ago. We shall keep all these matters under review.
§ Mr. KinnockWould I be right in being encouraged by my right hon. Friend's answer that the matter of the submarines is under review? Will he confirm or deny that an export licence has been granted for the submarines? Does he accept that if there is change of government in a democratic society, different conditions may be imposed on a contract drawn with an earlier government in a particular historical era? Does he agree that we should view the submarines more in that light than in the harsher commercial light of selling them to a country that cannot afford to pay for them?
Mr. CallaghanI do not know about the export licence. I am not sure whose responsibility it is to issue it, but I shall look into that. The question of commercial responsibility is a matter that turns more on the Law Officers' view of the situation. Her Majesty's Government would need to take note if Chile were to fall into defeault with its payments.