§ 3.19 p.m.
§ Lord ORR-EWINGMy Lords, I beg leave to ask the Question which stands in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government what is likely to be the overall cost to Britain of the French missile Exocet and to what extent the cost will be offset by French purchases of United Kingdom arms as agreed under the Carrington Memorandum of Understanding.
§ Lord WINTERBOTTOMMy Lords, I have nothing to add to the Answer given to the noble Lord on 3rd December 1975.
§ Lord ORR-EWINGMy Lords, is it not a fact that Britain was the first country to place an order for this surface-to-surface missile? Is it not equally true that by spending upwards of £150 million we have financed much of the development and production of this missile, which has now been sold to 14 other nations? Is it not time that France—this refers to the second part of the Question—now honoured the Carrington Agreement and placed orders for some of the admirable missiles and other armaments which we are able to offer NATO? If this is not done, will they not have abrogated a solemnly entered into agreement and contract?
§ Lord WINTERBOTTOMMy Lords, the Exocet agreement, which is still in process of negotiation, will he negotiated within the terms of the 1973 Carrington Memorandum. The financial arrangements of the purchase include the provision that United Kingdom contractors should receive orders for the supply of components that would at least compensate the United Kingdom in full for its expenditure on this weapon. If the agreed level of offset is not reached, any shortfall will be taken into account under the 1973 Memorandum of Reciprocity in defence equipment purchases. Under that agreement, up to September 1975, the balance was in favour of this country.
§ Lord GLADWYNMy Lords, is it not a fact that the possible production in common of weapons comparable to the French Exocet will not be contemplated in the framework of the recently constituted Armaments Procurement Agency, to which, as I understand it, the French are now happily a party?
§ Lord WINTERBOTTOMMy Lords, one hopes that the creation of this organisation will facilitate balancing arrangements such as those mentioned.
§ Lord WIGGMy Lords, does my noble friend consider that the suggestion that the French have not kept their word in order to serve French interests is a wanton attack on one of our Community partners?
§ Lord WINTERBOTTOMMy Lords, the noble Lord was merely asking for clarification. There was no question of an attack on our relationship with France.
§ Lord ORR-EWINGMy Lords, will the noble Lord be a little more forthcoming? He did not mention the cost, but he must have a rough estimate—say, £150 million? It has escalated enormously and it has been delayed; we had hoped that it would be available long before this.
§ Lord WINTERBOTTOMMy Lords, as the noble Lord is aware, it is the principle not to inform anyone of the actual cost of projects such as these.
§ Lord STRATHCONA and MOUNT ROYALMy Lords, in that case, perhaps the noble Lord can tell us what were the financial and technical considerations which led the Government to order this missile in preference to anything produced in this country?
§ Lord WINTERBOTTOMMy Lords, it was a suitable weapon available at the time.