HL Deb 11 December 1990 vol 524 cc384-6

2.55 p.m.

Lord Annan asked Her Majesty's Government:

What direct financial contributions have been made by the Federal Republic of Germany and Japan to the costs of maintaining British forces in Saudi Arabia.

Lord Reay

My Lords, none. However, Chancellor Kohl recently made an offer of equipment, training support and military air transport assistance within the NATO area which my right honourable friend the then Prime Minister welcomed. The Japanese Government have announced a contribution of 2 billion dollars to assist the multinational forces in Saudi Arabia. We hope that some of this money can be made available in support of British forces.

Lord Annan

My Lords, I thank the noble Lord for that Answer, but does he not agree that because we are now spending £3.5 million a day on our forces, direct contributions should be made by countries which are debarred by their own constitutions from sending forces to the Gulf? Does not the Minister agree that those countries should therefore subsidise our forces directly? Does the Minister recall that in the 18th century Frederick the Great received from this country subsidies which were very useful indeed in restraining the French?

Lord Reay

My Lords, the noble Lord wishes to take me back even further than I was drawn on the previous Question. I shall not follow him as regards the last part of what he said. A substantial package of assistance from the Germans has now been drawn up. I hope that some of the detail will be announced later today. Final budgetary approval is currently being sought from the Japanese Parliament. Once that has been agreed, funds will be transferred to the Gulf Co-operation Council which will then allocate it to meet the costs of those countries which are contributing troops.

Lord Cledwyn of Penrhos

My Lords, the noble Lord, Lord Annan, referred to a cost of £3.5 million a day. Can the Minister confirm that that has been the average cost since 2nd August? Can he also say what the estimated cost will be after 15th January?

Lord Reay

My Lords, I have no figure for the estimated cost after 15th January. I can confirm that the current daily cost is around £3.5 million.

Lord Monkswell

My Lords, given that the Government have sent armed forces to the Middle East in support of United Nations resolutions, can the Minister advise us whether any request for financial assistance has been made to the United Nations?

Lord Reay

My Lords, I believe the noble Lord is asking me what further financial assistance has been made towards the United Nations. Apart from financial assistance in support of the international military effort, substantial economic assistance has been given by Germany and Japan, the two countries concerned in this Question. That assistance has been given to the countries most badly affected; namely, Jordan, Egypt and Turkey. The sums involved are quite substantial and meet our objective that countries not making a major contribution to the multinational force should provide the bulk of economic assistance to the countries affected.

Lord Monkswell

My Lords, I believe that the Minister misunderstood the question. If our troops are in the Middle East in support of the UN's position, why are we not asking for financial assistance from the United Nations?

Lord Reay

My Lords, I am not sure that I know the answer to that question. This Question is specifically on the issue of contributions made by Germany and Japan and I have sought to answer that.

Lord Annan

My Lords, can the Minister say whether the Foreign Office is pressing this point? One of the reasons it is difficult to reduce inflation in this country is precisely the great additional burden which our country agreed to carry. Does not the Minister agree that the other countries which are debarred from carrying that burden should contribute directly to our costs?

Lord Reay

My Lords, the noble Lord again makes very forcefully a very good and strong point. I have nothing further to add to what I said. Germany is providing a substantial package of assistance and further details about it will be announced shortly. We also hope that we shall be able to benefit from the large sum of money which is being allocated by Japan.

Lord Renton

My Lords, is it not a fact that Germany and Japan would be among the countries with most to lose if Saddam were to succeed?

Lord Reay

In common with the rest of us, my Lords.