§ 3.20 p.m.
§ THE EARL OF KINNOULLMy Lords, I beg leave to ask the second Question which stands in my name on the Order Paper.
§ [The Question was as follows:
§ To ask Her Majesty's Government how soon a final agreed compensation figure will be reached over the cancellation of the F.111 aircraft, and within what period the payment will become due.]
§ LORD SHACKLETONMy Lords, although our negotiations with the United States authorities have not yet been completed, considerable progress has been made. The dollar cost of cancelling the F.111, including expenditure already incurred, is estimated to be about £25 million and there will be some additional cost in the United Kingdom as a result of the cancellation of contracts for equipment placed with British firms. It is expected that a figure for dollar charges will be agreed with the United States authorities before the end of this year and that payment will be made during the current financial year.
§ THE EARL OF KINNOULLMy Lords, I thank the noble Lord for his reply. Can he say whether the standard cancellation clause in the American contract referred to the amount of compensation being in relation to the state of development of the aircraft at the time of cancellation?
§ LORD SHACKLETONMy Lords, I can give a categorical "No" in answer to that question.