75. Mr. Atkins
asked the Secretary of State for Defence what indemnities he has given to the United States Navy Department in connection with the construction 110W by contract of ships for that Department, and why these will be more costly than originally estimated for.
§ Mr. J. P. W. Mallalieu
Currently the United States Navy Department hold Bid Bonds from Her Majesty's Government relating to the bids made in response to invitations to tender for two surveying ships and an ocean going salvage tug. If those bids are successful, performance and payments bonds will also be needed to meet United States requirements. This is a new service not previously provided for, which is why a token Supplementary Estimate has been taken. No expenditure will arise if the contracts are satisfactorily completed.