§ Mr. Edelmanasked the Minister of Aviation if he will make a further statement about United Kingdom collaboration with Germany on the VF614 project for a small short-haul jet aircraft.
§ Mr. MulleyThe Government have agreed, on the basis of a special funding arrangement proposed by the Federal German Government, to the development of the Bristol Siddeley M45H engine chosen by the German company for their VFW614 project.
Apart from this collaboration on the engine, we have decided that financial assistance from public funds cannot be made available to enable a British air-frame manufacturer to participate as a principal on a risk-sharing basis in a project based on the VFW614 design. This decision does not exclude the possibility of Short Brothers & Harland participating as a sub-contractor on a normal commercial repayment basis if they are so invited. These decisions have been conveyed to the Federal German and Dutch Governments.