CHANCELLOR SCHMIDT (Hansard, 11 April 1978)

§ Q4. Mr. Gwilym Roberts
asked the Prime Minister when he plans to have a further meeting with the West German Chancellor.

§ The Prime Minister
I have been in touch with Chancellor Schmidt about dates for the next in the series of our regular bilateral meetings, and an announcement will be made shortly.

§ Mr. Roberts
When my right hon. Friend meets the West German Chancellor will he reopen with him the question of the offset agreement for British troops in Germany? Will he put it to him that many people in Britain are angry that a wealthy country such as Germany is prepared to pay only about 6 per cent. of our annual £600 million bill?

§ The Prime Minister
No, I shall not reopen this matter. The agreement, which was signed in Bonn on 18th October 1977, made it clear that it was the final 1179 settlement that would be made. We now operate under our treaty obligations.

§ Mr. Geoffrey Finsberg
When the Prime Minister meets the West German Chancellor will he take an opportunity of discussing with him the problems that the West German Government have had, as have other NATO allies, of grave breaches of security? The latest breach in West Germany may well have imperilled all of NATO's strategic planning.

§ The Prime Minister
The problems of security between our countries are discussed from time to time. However, I am in no doubt that Chancellor Schmidt takes this issue as seriously as do I and the hon. Gentleman. I think that there is no need for me to remind him about it.

§ Mr. John Mendelson
In discussions with the Chancellor of the Federal Republic, will my right hon. Friend take the message with him that his decision to agree with President Carter on not proceeding with the preparation of the neutron bomb will receive widespread support in this country, despite some opinions that have been expressed, and shows the wisdom and statesmanship of the President of the United States? Will he note that those who supported him when he made his statement a fortnight ago about the Soviet weapon now hope that the Soviet Government will make an appropriate response?

§ The Prime Minister
It is important that the Soviet Government should take note of the deep feeling in the Western world about the enhancement of its own weapons and their capacity for improvement, which has been very substantial. If we are to have a successful disarmament conference in New York at the end of May, it will be for the Soviet Government to respond to what the President has done.

§ Mr. MacFarquhar
In view of some of the remarks that my right hon. Friend made yesterday when reporting on the European Summit, will he say whether Chancellor Schmidt will regard today's Budget, to be introduced by my right hon. Friend the Chancellor of the Exchequer, as the opening salvo in a concerted European campaign against unemployment and in favour of growth?

§ The Prime Minister
I think that we had better wait and hear the Budget before we decide what we think about it, let alone Chancellor Schmidt.

§ Mr. Mayhew
When the right hon. Gentleman meets Chancellor Schmidt will he discuss with him whether it would be possible even to maintain our present support for NATO if the £1,000 million cuts in defence expenditure proposed by his party's published and adopted policy were given effect?

§ The Prime Minister
I do not think that it would be possible to maintain our posture if we were to cut defence expenditure by £1,000 million. That is why the Government do not intend to agree to it.

§ Mr. John Evans
Will my right hon. Friend make it clear to Chancellor Schmidt when next he meets him that the greatest threat to the Common Market is massive unemployment? Will he point out to him that it is essential that West Germany takes the lead in inflating the economies of the Common Market, otherwise, some countries, including Britain, may be forced to take protective measures, including, if necessary, import controls?

§ The Prime Minister
I dealt with these questions at some length yesterday, when I made my report. It is clear that the Federal Republic is as concerned as any other country to secure growth. The difference at the moment, if there is a difference, is how that growth can best be achieved.