§ Sir W. Robson-Brownasked the Chancellor of the Exchequer what will be the net financial benefit accruing from the agreement on defence and other costs with the Federal German Republic; and what will be the exact amount to be contributed by the Federal German Republic towards the cost of maintaining the British forces in Germany.
§ Mr. BrookeThe Federal German Government have undertaken to spend DM 600 million (about £54 million) in relief of the United Kingdom balance of payments in each of the two years beginning 1st April, 1962, and 1st April, 1963. This represents about three-quarters of the foreign exchange outgoings on the British forces stationed in Germany; it does not involve a contribution towards the budgetary cost. The bulk of the German expenditure will be on military items (principally arms purchases). As I explained to the House on 19th March, the net gain to the balance of payments will be less than the gross figure.