§ The Earl of KIMBERLEYMy 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 why the Treasury refused to give extended credit to the aerospace industry, as a result of which an export order in excess of £300 million to Egypt has been lost to France.
Lord ORAMMy Lords, I take this Question to refer to a recent newspaper report that the Egyptian Government are to purchase various military aircraft from France. It has been the practice of successive United Kingdom Governments not to disclose details of arms sales, but I can say that no request for credit support has been received from the Egyptian Government for aerospace equipment.
§ The Earl of KIMBERLEYMy Lords, while thanking the Minister for that rather satisfactory reply, may I ask him to give an assurance that if India, which I believe 355 is very much in the same boat as Egypt, required long-term credit to purchase Jaguar fighters, the Treasury would be sympathetic?
Lord ORAMMy Lords, that is a different country and therefore a different question, but in principle the answer is, Yes. Of course, this kind of question can be examined only in the light of the facts as they exist at the relevant time and I am sure that the noble Earl appreciates that.
§ Lord CARRINGTONMy, Lords, the noble Lord, Lord Oram, said that no request had come from the Egyptian Government. Had any request come from the British aerospace industry?
Lord ORAMNot to my knowledge, my Lords. As I understand it, there has been no request for export guarantees from any source.
§ Lord WYNNE-JONESMy Lords, would my noble friend agree that the Government have shown their determination to create an effective and viable aerospace industry by the proposals which they have already put forward to create a strong national industry?