§ Sir T. Beamishasked the Chancellor of the Exchequer what would be the approximate annual saving in foreign exchange that would result from maintaining British forces in Germany at their present strength, assuming that by far the greater 35W part of these costs is covered by proposals already announced by Her Majesty's Government, in comparison with the foreign exchange costs of maintaining these forces in the United Kingdom.
§ Mr. CallaghanThere is undoubtedly some foreign exchange element in the maintenance of forces in the United Kingdom, but there are so many unknown factors that it is impossible to make a realistic estimate of the difference between this and the cost of maintaining them abroad. There is no doubt however that maintaining forces abroad costs much more in foreign exchange than maintaining them at home.
§ Sir T. Beamishasked the Chancellor of the Exchequer what proportion of the £72 million offset against the foreign exchange cost of maintaining British forces it Germany in 1967–68 he expects to arise from German and United States purchases, respectively, in the United Kingdom; and by what criteria he will judge the proportion of such purchases which cannot be so offset because they would probably have arisen in the normal course of trade.
§ Mr. CallaghanI would refer the hon. Member to the statement made today by my right hon. Friend the Minister of State for Foreign Affairs.
§ Sir T. Beamishasked the Chancellor of the Exchequer what he estimates as the gain in foreign exchange through the maintenance in this country of United States and Canadian armed forces since the war ended and what account he is taking of the gain this year in assessing the United Kingdom's ability to meet the foreign exchange costs of British forces overseas, and especially in the Federal Republic of Germany.
§ Mr. CallaghanI regret information is not available for the years before 1951. Over the 16 years from 1951–66 Government receipts from the stationing of North American forces in this country have averaged some £17 million a year (£9 million in 1966); and in addition there have been private receipts averaging some £40 million a year (£30–35 million in 1966).
As the Government have made clear on many occasions, it has been decided, after taking account of existing resources, 36W that the foreign exchange burden of our troops overseas must be reduced. As regards the foreign exchange cost of troops stationed in the Federal Republic of Germany I would refer the hon. and gallant Member to my Budget Speech.—[Vol. 744, c. 981.]