§ Mr. Boyd-Carpenter
Yes. Following on the talks which I had in Bonn in May with Dr. Dahlgrün, the Federal German Minister of Finance, an Agreement in respect of these costs has now been reached. The full text of the Agreement will be published as a Command Paper as soon as possible.
The main features of it are that the Federal German Government state that it is their intention, insofar as possible, to offset these foreign exchange costs and thereby relieve the balance of payments of the United Kingdom in the period 1st April, 1964, to 31st March, 1966. This will be done by military and civil purchases in the United Kingdom, and by purchases on behalf of third countries which result from action taken by the Federal Government and bring benefit to our balance of payments.
All possible steps will also be taken over the next two years in order to improve in the future the British balance of payments through German military purchases in the United Kingdom.
The two Governments will appoint a Joint Committee to deal with all questions which arise out of the carrying out of the Agreement. The Joint Committee will make periodic reports to the two Governments. If at any time during the currency of the Agreement it appears to either Government that the position as regards the implementation of the Agreement is developing in an unsatisfactory manner, there will be joint consultation between the two Governments with a view to remedial action.